A merchant marks his goods up by 40% and then offers a discount of 20% on the marked price. What % profit does the merchant make after the discount?
Select.
A) 21 % B) 25 % C) 69 % D) 31 % E) 12 %

Rationale: "let the price be 100 . the price becomes 140 after a 40 % markup . now a discount of 20 % on 140 . profit = 112 - 100 12 % answer e"
Answer: E