1. **Stating the problem:** We are given a tree diagram representing the distribution of money in percentages: 12.5% and 87.5%, where 87.5% further splits into 75% and 25%. We also have a fraction $\frac{120}{90}$. We want to understand how these percentages relate and possibly simplify the fraction. 2. **Understanding the percentages:** The total money is split into two parts: 12.5% and 87.5%. The 87.5% is further divided into 75% and 25%. This means: - The first part is 12.5% of the total. - The second part is 87.5% of the total, which itself is split into 75% and 25% of that 87.5%. 3. **Calculating the actual percentages of the total:** - The 75% of 87.5% is $0.75 \times 0.875 = 0.65625$ or 65.625% of the total. - The 25% of 87.5% is $0.25 \times 0.875 = 0.21875$ or 21.875% of the total. 4. **Summarizing the parts:** - 12.5% - 65.625% - 21.875% These add up to 100%. 5. **Simplifying the fraction $\frac{120}{90}$:** $$ \frac{120}{90} = \frac{\cancel{30} \times 4}{\cancel{30} \times 3} = \frac{4}{3} $$ 6. **Interpretation:** The fraction $\frac{120}{90}$ simplifies to $\frac{4}{3}$, which might represent a ratio related to the money distribution or another quantity. **Final answer:** The fraction $\frac{120}{90}$ simplifies to $\frac{4}{3}$, and the money distribution percentages break down as 12.5%, 65.625%, and 21.875%.