A company that owed $2,000 paid early and got a $40 discount. What fraction of the amount owed was the discount?
we have that
$2,000 represent the 100%
so
Applying proportion
Find out how much percentage represent $40
100/2,000=x/40
solve for x
x=(100/2,000)*40
x=(1/20)*40
x=40/20
x=2%
2%=2/100=1/50
the fraction is 1/50