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40000\times \frac{25}{1000}
Expand \frac{2.5}{100} by multiplying both numerator and the denominator by 10.
40000\times \frac{1}{40}
Reduce the fraction \frac{25}{1000} to lowest terms by extracting and canceling out 25.
\frac{40000}{40}
Multiply 40000 and \frac{1}{40} to get \frac{40000}{40}.
1000
Divide 40000 by 40 to get 1000.