The above equation represents this situation, where the new price is 25% off the original price. Calling P to the original price, and solving for new price,
[tex]\begin{gathered} \frac{\text{new price - P}}{P}=-\frac{25}{100} \\ \frac{\text{new price - P}}{P}=-0.25 \\ \text{new price - P = -0.25}\cdot P \\ \text{new price = -0.25}\cdot P+P \\ \text{new price = }P\text{ - 0.25P} \\ \text{new price = 0.75}\cdot P \end{gathered}[/tex]That is, the new price is 75% of the original price
The expression 1 - 0.25P also represents the price of the item
