Sandra Williams bought a home with a 10.25% adjustable rate mortgage for 25 years. She paid $9 27 monthly per thousand on her original loan. At the end of 3 years she owes the bank $50,000. Since then interest rates have
increased to 12.75%. The bank will renew the mortgage at this rate, or Sandra can pay the bank $50,000. She
decides to renew and will now pay $11.10 monthly per thousand on her loan. You can ignore the small amount of
principal paid during the 3 years.
What was the old monthly payment? $
What is the new monthly payment? $
What is the percent increase in her monthly payment to the nearest tenth)?
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