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50\times \frac{25}{1000}
Expand \frac{2.5}{100} by multiplying both numerator and the denominator by 10.
50\times \frac{1}{40}
Reduce the fraction \frac{25}{1000} to lowest terms by extracting and canceling out 25.
\frac{50}{40}
Multiply 50 and \frac{1}{40} to get \frac{50}{40}.
\frac{5}{4}
Reduce the fraction \frac{50}{40} to lowest terms by extracting and canceling out 10.