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The "solution" by @mananth, as it is written in his post, is a GIBBERISH in its purest form.
I came to bring a standard correct Algebra solution and set out it as it SHOULD BE done.
Let x be the number of students registered last year (the unknown value).
Then the number of students registered this year is
x + 0.125x = x*(1+0.125) = 1.125x,
according to the condition.
Thus you have this equation
1.125x = 2250.
Divide both sides by 1.125 and get the ANSWER
x = = 2000.
Solved and carefully explained.
Ignore the post by @mananth, for your safety and for the peace in your mind.