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\frac{0.2}{100}\times 1
Divide 100 by 100 to get 1.
\frac{2}{1000}\times 1
Expand \frac{0.2}{100} by multiplying both numerator and the denominator by 10.
\frac{1}{500}\times 1
Reduce the fraction \frac{2}{1000} to lowest terms by extracting and canceling out 2.
\frac{1}{500}
Multiply \frac{1}{500} and 1 to get \frac{1}{500}.