tools.jar seems to be not in Android Studio classpath on Windows 8

I installed Android Studio but it was giving me error that I need to install JDK but JDK was already installed. Then I realized it is asking to install 64bit version of JDK.

Anyway I just downloaded latest JDK 64bit version and set the following in Environment Variable but still Android Studio is giving error:

Error

'tools.jar' seems to be not in Android Studio classpath.  
Please ensure JAVA_HOME points to JDK rather than JRE.

Following paths are set in my Windows 8.

Path in User Variables  
E:Program FilesJavajdk1.8.0_25bin

JAVA_HOME in System Variables  
E:Program FilesJavajdk1.8.0_25

Path in System Variables  
E:Program FilesJavajdk1.8.0_25bin

32bit JDK is installed on C drive while 64bit JDK is installed on E drive (as shown above). 32 bit JDK is not being used in any User or System Variables.

I have also restarted the PC.

How do I fix this issue?

Answer

I tried everything I could but it didn’t help. So I reinstalled Windows and installed Android Studio and now everything works.

And the irony is, there is no JAVA_HOME or JDK_HOME variable defined but it still works.