Fernando has been saving money to buy an e–book reader. A store has just marked down the price of its readers by 40%. Each reader comes with a mail-in rebate for $25. If the reader used to cost $150, what will Fernando's final price be after the markdown and rebate?

Complete each step to solve the problem.

1. How much money will Fernando save because of the 40% markdown? Show your work. (3 points)