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\frac{12-7}{100}
Since \frac{12}{100} and \frac{7}{100} have the same denominator, subtract them by subtracting their numerators.
\frac{5}{100}
Subtract 7 from 12 to get 5.
\frac{1}{20}
Reduce the fraction \frac{5}{100} to lowest terms by extracting and canceling out 5.