In this case, 12.5% means 12.5/100, i.e., 125/1000, which is 1/8. This means that 12.5% of 720 is equal to 1/8th of 720.
★ Similarly, if you have something, like 28% of 50, use the commutative property and the answer will be 50% of 28. 50% indicates ½, the answer will thus be 28/2, i.e., 14.