A merchant purchases a cloth at a rate of Rs.100 per meter and receives 5 cm length of cloth free for every 100 cm length of cloth purchased by him. He sells the same cloth at a rate of Rs.110 per meter but cheats his customers by giving 95 cm length of cloth for every 100 cm length of cloth purchased by the customers. If the merchant provides a 5% discount, the resulting profit earned by him is

It is given that a merchant purchases a cloth at a rate of Rs.100 per meter and receives 5 cm length of cloth free for every 100 cm length of cloth purchased by him.

Hence, the cost price of 105 cm clothes is 100 rupees. 

It is also known that he marked the price of 100 cm clothes as 110 rupees, and gave a 5% discount, and he cheated his customers by giving 95 cm length of cloth for every 100 cm length of cloth purchased by the customers.

Hence, the selling price of 95 cm clothes is 110*(19/20) rupees.

Therefore, the selling price of 105 cm clothes is 115.5 rupees.

Hence, the profit is 15.5%

The correct option is C