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\frac{1}{500}\times \frac{1}{25}
Convert decimal number 0.04 to fraction \frac{4}{100}. Reduce the fraction \frac{4}{100} to lowest terms by extracting and canceling out 4.
\frac{1\times 1}{500\times 25}
Multiply \frac{1}{500} times \frac{1}{25} by multiplying numerator times numerator and denominator times denominator.
\frac{1}{12500}
Do the multiplications in the fraction \frac{1\times 1}{500\times 25}.