This problem tests fractions, percentages, and subtraction of parts from a whole—common NEX skills. First calculate the amount spent on decorations:

1

8

8

1

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of $500 equals $62.50. Next calculate the food cost: 25% is equivalent to 0.25, and 0.25 × 500 = $125. Add these two expenses together: $62.50 + $125 = $187.50. This represents the portion of the budget already allocated. To find the remaining budget for venue and entertainment, subtract this amount from the total budget: $500 − $187.50 = $312.50. Therefore, option A is correct. Option B assumes only one category was subtracted. Option C results from incorrect fraction conversion. Option D represents the amount already spent, not the remainder. NEX questions often require careful step-by-step subtraction after converting fractions and percentages correctly.

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