Answer:
$4,500
Step-by-step explanation:
Step 1: Read the percentage thoroughly. A 125% raise does not equal a 25% raise. A 100% raise means that the price is doubled. Therefore, when there is a raise of 125%, the price is actually 2.25 times higher than previously.
Step 2: Multiply the current cost by the rate in decimal form. 2,000 * 2.25 is 4,500. Remember, this is the raise over 10 years, not per year.
