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\frac{2.5}{4\times 100}
Express \frac{\frac{2.5}{4}}{100} as a single fraction.
\frac{2.5}{400}
Multiply 4 and 100 to get 400.
\frac{25}{4000}
Expand \frac{2.5}{400} by multiplying both numerator and the denominator by 10.
\frac{1}{160}
Reduce the fraction \frac{25}{4000} to lowest terms by extracting and canceling out 25.