Linking

Is there a way to not have to put in an absolute file path for linking images etc?

As it stands to link I need to use something like:

<img src="http://localhost/Wordpress/wordpress/wp-content/themes/Verbena_test/images/btn5.jpg">

But I’d much rather use something like:

<img src="../images/btn5.jpg">

But if I try this I don’t get any images, just your standard IE ‘red X’ any information would be appreciated since I’m new to word press and I’m working on my second theme 🙂