Given our current rail fare of £16.25, we are looking for the price of the rail fare after a 5% increase. 
To find the value of a 5% increase, we can multiply the rail fare by 1.05 since it is 5% added to the total value. 
Or, we can multiply the rail fare by 5 and then divide by 100 to get how much will be added onto it. 
Let's do both of them: 
Increase: 5% 
Equation: 1.05 x 16.25 
1.05 x 16.25 = 17.06 rounded to the nearest cent 
Rail Fare after 5% increase: £17.06
Increase: 5% 
Equation: (5 x 16.25)/100 
81.25/100 = .81 rounded to nearest cent 
Then, we add them together. 
16.25 + 81 = 17.06 
Rail Fare after 5% increase: £17.06