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\frac{1}{20}\times 500\times 40
Reduce the fraction \frac{5}{100} to lowest terms by extracting and canceling out 5.
\frac{500}{20}\times 40
Multiply \frac{1}{20} and 500 to get \frac{500}{20}.
25\times 40
Divide 500 by 20 to get 25.
1000
Multiply 25 and 40 to get 1000.