A watch passes through three hands and each person gains 25%. If the third person sells it for $62.50, what did the first person pay for it?	Choose the correct choice from the following options:
A) $24
B) $28
C) $32
D) $36
E) $40
1.25*1.25*1.25 * original price = 62.5   (5/4)^3 * original price = 62.5   original price = 64*62.5 / 125= 
<gadget id="calculator">64*62.5 / 125</gadget>
<output>32</output>
$32   The answer is $32.
<result>C</result>
A watch passes through three hands and each person gains 25%. If the third person sells it for $62.50, what did the first person pay for it?