To convert the decimal 0.125 to a fraction, follow these steps:
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Write 0.125 as a fraction: \[ \frac{125}{1000} \]
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Now, simplify the fraction by finding the greatest common divisor (GCD) of 125 and 1000. The GCD of 125 and 1000 is 125.
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Divide both the numerator and the denominator by their GCD: \[ \frac{125 \div 125}{1000 \div 125} = \frac{1}{8} \]
So, the fraction in lowest terms for 0.125 is: \[ \frac{1}{8} \]