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\frac{5}{10000}\times 1000
Expand \frac{0.05}{100} by multiplying both numerator and the denominator by 100.
\frac{1}{2000}\times 1000
Reduce the fraction \frac{5}{10000} to lowest terms by extracting and canceling out 5.
\frac{1000}{2000}
Multiply \frac{1}{2000} and 1000 to get \frac{1000}{2000}.
\frac{1}{2}
Reduce the fraction \frac{1000}{2000} to lowest terms by extracting and canceling out 1000.