25%
Explanation:
Let the last budget = x
This year's budget = 1 1/4 (last year budget)
[tex]\begin{gathered} \text{This year's budget = }1\frac{1}{4}\text{ (x)} \\ \text{This year's budget = }\frac{5}{4}x \end{gathered}[/tex]
Percentage increase:
[tex]\begin{gathered} \text{ \% increase= }\frac{this\text{year - last year }}{\text{last year}}\text{ }\times100 \\ \text{ \% increase =}\frac{\frac{5}{4}x\text{ - x}}{x}\text{ }\times\text{ 100} \end{gathered}[/tex][tex]\begin{gathered} \text{ \% increase =}\frac{\frac{5x\text{ - 4(x)}}{4}}{x}\text{ }\times\text{ 100} \\ \text{ \% increase =}\frac{\frac{x\text{ }}{4}}{x}\text{ }\times\text{ 100} \\ \text{ \% increase =}\frac{x\text{ }}{4}\times\frac{1}{x}\text{ }\times\text{ 100} \\ \text{ \% increase = 25\%} \end{gathered}[/tex]
