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\frac{32}{40}-\frac{5}{40}
Least common multiple of 5 and 8 is 40. Convert \frac{4}{5} and \frac{1}{8} to fractions with denominator 40.
\frac{32-5}{40}
Since \frac{32}{40} and \frac{5}{40} have the same denominator, subtract them by subtracting their numerators.
\frac{27}{40}
Subtract 5 from 32 to get 27.