Bret Rockford bought a home with a 11.5% adjustable rate mortgage for 20 years. He paid $10.67 monthly per thousand on his original loan. At the end of 1 year he owes the bank $70,000. Since then interest rates have increased to 13%. The bank will renew the mortgage at this rate, or Bret can pay the bank $70,000. He decides to renew and will now pay $11.72 monthly per thousand on his loan. (You can ignore the small amount of principal paid during the year.)
The old monthly payment is $
.
The new monthly payment is $
.
The percent increase in her monthly payment (to the nearest tenth) is
%