First, we need to find 8% of 1,575. To do so we have to divide 8 by 100, then multiply the quotient by 1,575.
8% ⇒ 0.08
1,575 × 0.08 = 126
Now add the 8% increase to the original cost.
1,575 + 126 = 1,701
Answer:
Option 1: $1,701.
I hope this helps :)