Yours is an IPv4 address. You're quite right that there aren't enough IPv4 addresses for every device to have one.
The answer to all your other questions is Network Address Translation.
Your entire house(/workplace/university/ISP/...) hides behind one address (the "public IP"). Your...
Hopefully this is a typo and you meant to write "1/8 is .125 of 1". I think you are mixing up two different concepts here though:
The "setback of 2 decimal places" is what "%" means. "per cent" literally means "for each hundred".
"12.5%" just means ".125" , dividing 12.5 by 100. As you...