1) Considering that the price has been reduced by 45%, then let's find out the new price:
25(1 - 0.45) = Discounted Price , tWhen we subtract from 1 we'll get the factor
1 represents 100%, 0.45 = 45%
25(0.55)
$13.75
2) So the new price after the discount, and not considering taxes is $13.75