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\frac{3}{5}-\left(\frac{35}{40}-\frac{16}{40}\right)
Least common multiple of 8 and 5 is 40. Convert \frac{7}{8} and \frac{2}{5} to fractions with denominator 40.
\frac{3}{5}-\frac{35-16}{40}
Since \frac{35}{40} and \frac{16}{40} have the same denominator, subtract them by subtracting their numerators.
\frac{3}{5}-\frac{19}{40}
Subtract 16 from 35 to get 19.
\frac{24}{40}-\frac{19}{40}
Least common multiple of 5 and 40 is 40. Convert \frac{3}{5} and \frac{19}{40} to fractions with denominator 40.
\frac{24-19}{40}
Since \frac{24}{40} and \frac{19}{40} have the same denominator, subtract them by subtracting their numerators.
\frac{5}{40}
Subtract 19 from 24 to get 5.
\frac{1}{8}
Reduce the fraction \frac{5}{40} to lowest terms by extracting and canceling out 5.