Multiplying by a power of $\displaystyle 10$ clears a terminating decimal.Let the rational number be \(\displaystyle x\). Its decimal expansion stops, and the last non-zero digit sits in the 4th decimal place. So nothing at all is written after the 4th place, and \(\displaystyle x\) looks like
\[x \;=\; \pm\, N.d_1d_2d_3d_4 ,
\]
where \(\displaystyle N\) is the whole-number part and \(\displaystyle d_1,d_2,d_3,d_4\) are digits with \(\displaystyle d_4 \neq 0\).
Multiplying by \(\displaystyle 10\) moves the decimal point one place to the right, so multiplying by \(\displaystyle 10^4\) moves it four places to the right — exactly enough to swallow all four decimal digits:
\[10^4 x \;=\; \pm\, N d_1 d_2 d_3 d_4 \quad(\text{now read as a whole number}).
\]
Call this integer \(\displaystyle p\). Dividing both sides by \(\displaystyle 10^4\),
\[x \;=\; \frac{p}{10^{4}} .
\]
Why \(\displaystyle p\) is not divisible by 10. The units digit of \(\displaystyle p\) is \(\displaystyle d_4\), and \(\displaystyle d_4 \neq 0\) because the 4th decimal place holds the
last non-zero digit. An integer is a multiple of $\displaystyle 10$ exactly when its units digit is \(\displaystyle 0\). Since the units digit of \(\displaystyle p\) is not \(\displaystyle 0\), \(\displaystyle 10 \nmid p\).
For example \(\displaystyle 0.0625 = \dfrac{625}{10^4}\), \(\displaystyle 12.3456 = \dfrac{123456}{10^4}\), \(\displaystyle 0.0001 = \dfrac{1}{10^4}\) — in each case the numerator ends in a non-zero digit.
Second part: yes, it is necessary.Write \(\displaystyle 10^4 = 2^4 \times 5^4\), so \(\displaystyle x = \dfrac{p}{2^4 \times 5^4}\). To reduce this to lowest form we cancel \(\displaystyle g = \gcd(p, 10^4)\); the lowest-form denominator is \(\displaystyle \dfrac{10^{4}}{g}\). Since \(\displaystyle 10^4\) has only the primes $\displaystyle 2$ and $\displaystyle 5$, \(\displaystyle g = 2^a \times 5^b\) with \(\displaystyle 0 \le a \le 4\) and \(\displaystyle 0 \le b \le 4\).
Now use \(\displaystyle 10 \nmid p\). If \(\displaystyle p\) had
both a factor $\displaystyle 2$ and a factor $\displaystyle 5$, it would have the factor \(\displaystyle 2\times 5 = 10\) — which it does not. So at least one of "\(\displaystyle 2 \mid p\)", "\(\displaystyle 5 \mid p\)" fails, giving two cases.
Case $\displaystyle 1$: \(\displaystyle p\) is odd. Then no $\displaystyle 2$ can be cancelled, so \(\displaystyle a = 0\) and \(\displaystyle g = 5^{b}\). The lowest-form denominator is
\[\frac{2^4 \times 5^4}{5^{b}} = 2^{4} \times 5^{\,4-b},
\]
which is divisible by \(\displaystyle 2^4 = 16\).
Case $\displaystyle 2$: \(\displaystyle p\) is not a multiple of 5. Then \(\displaystyle b = 0\) and \(\displaystyle g = 2^{a}\). The lowest-form denominator is
\[\frac{2^4 \times 5^4}{2^{a}} = 2^{\,4-a} \times 5^{4},
\]
which is divisible by \(\displaystyle 5^4 = 625\).
Every \(\displaystyle p\) with \(\displaystyle 10 \nmid p\) falls into at least one of these two cases, so the conclusion always holds. The reason in one line: cancelling can strip the 2s
or the 5s, but never both, because \(\displaystyle p\) does not carry both factors.
Some checks:
\[0.0625 = \frac{625}{10^4} = \frac{1}{16},\qquad 16 = 2^4 \;\checkmark
\]
\[0.0016 = \frac{16}{10^4} = \frac{1}{625},\qquad 625 = 5^4 \;\checkmark
\]
\[0.1234 = \frac{1234}{10^4} = \frac{617}{5000},\qquad 5000 = 2^3 \times 5^4 \;\checkmark
\]
\[0.0001 = \frac{1}{10^4},\qquad 10^4 = 2^4 \times 5^4 \;\checkmark \text{ (both)}
\]
Answer. Such a number is \(\displaystyle x = \dfrac{p}{10^{4}}\) with \(\displaystyle p\) an integer whose units digit is the non-zero 4th decimal digit, so \(\displaystyle 10 \nmid p\). And yes — in lowest form its denominator must be divisible by \(\displaystyle 2^4\) or by \(\displaystyle 5^4\) (by both when \(\displaystyle p\) is coprime to $\displaystyle 10$), because \(\displaystyle p\) cannot supply factors of $\displaystyle 2$ and of $\displaystyle 5$ at the same time.