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\frac{7}{16}-\frac{1}{4}
Convert decimal number 0.25 to fraction \frac{25}{100}. Reduce the fraction \frac{25}{100} to lowest terms by extracting and canceling out 25.
\frac{7}{16}-\frac{4}{16}
Least common multiple of 16 and 4 is 16. Convert \frac{7}{16} and \frac{1}{4} to fractions with denominator 16.
\frac{7-4}{16}
Since \frac{7}{16} and \frac{4}{16} have the same denominator, subtract them by subtracting their numerators.
\frac{3}{16}
Subtract 4 from 7 to get 3.