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100\times \frac{5}{10000}
Expand \frac{0.05}{100} by multiplying both numerator and the denominator by 100.
100\times \frac{1}{2000}
Reduce the fraction \frac{5}{10000} to lowest terms by extracting and canceling out 5.
\frac{100}{2000}
Multiply 100 and \frac{1}{2000} to get \frac{100}{2000}.
\frac{1}{20}
Reduce the fraction \frac{100}{2000} to lowest terms by extracting and canceling out 100.