When working with problems involving one number being x percent more than another or x percent less than another, work with the fractions that correspond to the given percentages.
If Leo's income is 25% more than Jack's, then the fraction of Jack's income that represents Leo's income is .
Since Leo's income is 5/4 of Jack's, Jack's income is 4/5 of Leo's.
Now convert back to percents. 4/5 is 80%, which is 20% less than 100%. So Jack's income is 20% less than Leo's.
The statement "Leo's income is 25% more than Jack's" means that
L = 1.25*J.
It implies that
J = = = = 0.8*L.
In other words, Jack's income is 80% of Leo's income.
Or, which is the same, Jack's income is 20% less than Leo's income.