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Define the variable
Let \(x\) be the price of the movie ticket 4 years ago.
Set up the equation
The current price is \(125\%\) of the price 4 years ago.
We express \(125\%\) as a decimal:
$$125\% = 1.25$$
The current price is given as \(\$20\) (deduced from the cut-off text "\$2").
$$1.25x = 20$$
Solve for the unknown
Divide both sides by \(1.25\) to find \(x\):
$$x = \frac{20}{1.25}$$
$$x = 16$$
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\(16\)