Cliff branch bought a home with a 10.5% adjustable rate mortgage for 30 years. he paid $9.99 monthly per thousand on his original loan. at the end of 3 years he owes the bank $65,000. since interest rates have risen to 12.5%, the bank will renew the mortgage at this rate, or cliff can pay the bank $65,000. he decides to renew and will now pay $10.68 monthly per thousand on his loan. (you can ignore the small amount of principal paid during the 3 years.) i cant figure this out