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\frac{125}{1000}\times 32
Expand \frac{12.5}{100} by multiplying both numerator and the denominator by 10.
\frac{1}{8}\times 32
Reduce the fraction \frac{125}{1000} to lowest terms by extracting and canceling out 125.
\frac{32}{8}
Multiply \frac{1}{8} and 32 to get \frac{32}{8}.
4
Divide 32 by 8 to get 4.