Fortunate Inflation

The price of an item in pounds and pence is increased by 4%. The new price is an integer number of pounds. Can you find it?
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Problem



The price of an item in pounds and pence is increased by $4\%$.

The new price is exactly $n$ pounds where $n$ is a whole number.

What is the smallest possible value of $n$?

This problem is taken from the UKMT Mathematical Challenges.