It would be 120 because 4% of 125 is 5, so you subtract 5 from 125 to get 120. I am pretty sure that's how you do it
125 ∗ 100 100 − 4 = 125 ∗ 100 96 = 25 125 ∗ 24 = 5 ∗ 24 = 120
125 pounds decreased by 4% is 120 pounds, which is found by calculating 4% of 125 (which is 5) and then subtracting this value from 125.
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