Answer: The percentage reduction will be 7%.
Explanation:
The following information can be depicted:
Price of new car = 12500
New price after the reduction =11625
The percentage reduction will be:
= [(12500 - 11625) / 12500] × 100
= 875/12500 × 100
= 7%
Therefore, based on the computation that has been done above, the percentage reduction will be 7%.