If a merchant offers a discount of 40% on the list price, then he makes a loss of 10%. What % profit or % loss will he make if he sells at a discount of 20% of the list price?

If a merchant offers a discount of 40% on the list price, then he makes a loss of 10%. What % profit or % loss will he make if he sells at a discount of 20% of the list price?
1). 4 percent loss
2). 14 percent profit
3). 5.5 percent loss
4). 20 percent profit

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