1. The problem asks to simplify the fraction $\frac{120}{500}$. 2. To simplify a fraction, we divide the numerator and denominator by their greatest common divisor (GCD). 3. Find the GCD of 120 and 500. - Prime factors of 120: $2^3 \times 3 \times 5$ - Prime factors of 500: $2^2 \times 5^3$ - Common factors: $2^2 \times 5 = 20$ 4. Divide numerator and denominator by 20: $$\frac{120}{500} = \frac{\cancel{20} \times 6}{\cancel{20} \times 25} = \frac{6}{25}$$ 5. The simplified fraction is $\frac{6}{25}$.