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If a book costs $20, and the price is increased by 25%, what is the new price?

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To calculate the new price after a 25% increase, you can follow these steps:

  1. Calculate the amount of the increase: \[ \text{Increase} = \text{Original Price} \times \text{Percentage Increase} \] \[ \text{Increase} = 20 \times 0.25 = 5 \]

  2. Add the increase to the original price: \[ \text{New Price} = \text{Original Price} + \text{Increase} \] \[ \text{New Price} = 20 + 5 = 25 \]

So, the new price of the book after the 25% increase is $25.