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40=k\times \frac{20}{0.05}
Subtract 20 from 40 to get 20.
40=k\times \frac{2000}{5}
Expand \frac{20}{0.05} by multiplying both numerator and the denominator by 100.
40=k\times 400
Divide 2000 by 5 to get 400.
k\times 400=40
Swap sides so that all variable terms are on the left hand side.
k=\frac{40}{400}
Divide both sides by 400.
k=\frac{1}{10}
Reduce the fraction \frac{40}{400} to lowest terms by extracting and canceling out 40.