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\frac{40}{1.1664}
Calculate 1.08 to the power of 2 and get 1.1664.
\frac{400000}{11664}
Expand \frac{40}{1.1664} by multiplying both numerator and the denominator by 10000.
\frac{25000}{729}
Reduce the fraction \frac{400000}{11664} to lowest terms by extracting and canceling out 16.