Annuity I and annuity II both provide payments at the end of each two-year period for twenty years. Annuity I pays $1,000 and the end of each period and annuity II pays $1,000 at the end of the first period and increases the payment by $1,000 in each subsequent period so that at the end of the tenth period it pays $10,000. The present value at a 2% nominal annual interest rate compounded semiannually of annuity I and annuity II are calculated, that of annuity I being $8,087. In which of the following ranges is the present value of annuity II?

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Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.