I'm confused on something relatively silly.

This math problem is as follows:

"Fast-food stands cost $6.50. The price has steadily increased 4% per year for many years.

Question 1: What will it cost in 10 years?

solution: $6.50 is the initial value and the multiplier is 1.04."

I'm only confused on the multiplier. How did they get 1.04?