Let the price initially is $100
And it is increasing per month at a rate of 2.5% , or we can say 0.025
Now applying the formula [tex] A= P(1+r)^n [/tex]
where A is amount( final value) , P is initial value , r is rate , and n is the number of months.
Now we have to calculate for 1 year it means , n=12
So plugging all the values we get
[tex] A=100(1+0.025)^(12) [/tex]
By plugging in calculator we get
A=134.4889
It means Increase in price in 1 year = 134.4889 - 100 = 34.4889
So In percent = 34.4889%
In a year it increases at 34.4889%
