A department store purchases screen-printed t-shirts at a cost of $5 per shirt. They mark up the price 150% (making the selling price 250% of the store's purchase price) and put them on the sales floor. Every month that a t-shirt doesn't sell, the store reduces the selling price by 25%.

Which expression shows the selling price after one monthly price reduction?

$5 + $5(1.50) – $5(0.25)
$5 + ($5)(0.25) – ($5)(1.50)
$5(2.50) – $5(0.25)
($5)(2.50) – ($5)(2.50)(0.25)