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\frac{0.085}{0.04}
Subtract 0.035 from 0.12 to get 0.085.
\frac{85}{40}
Expand \frac{0.085}{0.04} by multiplying both numerator and the denominator by 1000.
\frac{17}{8}
Reduce the fraction \frac{85}{40} to lowest terms by extracting and canceling out 5.