SOLUTION:
A store decreases its prices by 25%.
The statement above means that one should find the value of the 25% and then subtract it from the actual price.
Another way of stating this is;
100% - 25% = 75%
Meaning that finding the 75% (0.75) value will give us the direct 25% (0.25) reduction price.
Another expression for the sale price apart from $120 - 0.25($120) is 0.75($120).
$120 - 0.25($120) = $120 - $30 = $90
Or
0.75 ($120) = $90