2005 Cayley Problem 24

The base of a triangular piece of paper ABC is 12 cm long. The paper is folded down over the base, with the crease DE parallel to the base of the paper. The area of the triangle that projects below the base is 16\% that of the area of the triangle ABC. The length of DE, in cm, is

\textbf{(A)}\ 9.6\quad \textbf{(B)}\ 8.4\quad \textbf{(C)}\ 7.2\quad \textbf{(D)}\ 4.8\quad \textbf{(E)}\ 6.96

If there are no answer choices shown, enter a numerical answer.

Full credit to this problem is given to the CEMC, you may view all Cayley contests here.