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\frac{1}{40}\times \frac{5}{100}
Reduce the fraction \frac{125000}{5000000} to lowest terms by extracting and canceling out 125000.
\frac{1}{40}\times \frac{1}{20}
Reduce the fraction \frac{5}{100} to lowest terms by extracting and canceling out 5.
\frac{1\times 1}{40\times 20}
Multiply \frac{1}{40} times \frac{1}{20} by multiplying numerator times numerator and denominator times denominator.
\frac{1}{800}
Do the multiplications in the fraction \frac{1\times 1}{40\times 20}.