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Express 5.025 as a fraction:
$$5\frac{1}{4}$$
$$\frac{203}{40}$$
$$5\frac{1}{40}$$
$$5\frac{1}{8}$$
$$5.025=5+0.025=5+\frac{25}{1000}=5+\frac{1}{40}=5\frac{1}{40}.$$
C is correct choice.
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