Final answer:
The new price of an item that costs $6.25 after a 25% markup is calculated by converting the markup percentage to a decimal, multiplying it by the original price to find the markup amount, and then adding this to the original price, resulting in a new price of $7.81.
Step-by-step explanation:
To find the new price for an item after a markup, you must first calculate the markup amount, and then add this to the original price. In this case, a $6.25 item marked up by 25%. First, convert the markup percentage to a decimal by dividing by 100, which gives us 0.25. Then, multiply this decimal by the original price to find the markup amount.
$6.25 × 0.25 = $1.56 (markup amount)
Next, add the markup amount to the original price to find the new price.
$6.25 + $1.56 = $7.81
So the new price after a 25% markup on an item costing $6.25 is $7.81.