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\frac{7\times 3}{12\times 7}
Multiply \frac{7}{12} times \frac{3}{7} by multiplying numerator times numerator and denominator times denominator.
\frac{3}{12}
Cancel out 7 in both numerator and denominator.
\frac{1}{4}
Reduce the fraction \frac{3}{12} to lowest terms by extracting and canceling out 3.