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\frac{98.75\times 10^{3}}{860}
Cancel out 10^{3} in both numerator and denominator.
\frac{98.75\times 1000}{860}
Calculate 10 to the power of 3 and get 1000.
\frac{98750}{860}
Multiply 98.75 and 1000 to get 98750.
\frac{9875}{86}
Reduce the fraction \frac{98750}{860} to lowest terms by extracting and canceling out 10.