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The n-th term of a geometric sequence with initial value a and common ratio r is given by
.
We have
and
and 
Substitute:

If you do the proportion, you have to put 1/5 = 20/100. The 20 represents the percentage. Then you have to say to yourself that how many time 5 goes to 100, well its x20 then if we multiply 1 x 20 we'll get 20. So, he is correct, 1/5 = 20%. Remember what number we think of when we hear the word percent, the number is 100.