Consider a mortgage pool that consists of 10 mortgages. Each mortgage carries an interest rate (note rate) of 10%, 10 years to maturity, principal of $1,000, and pays interest annually. Assume one mortgage per year prepays in the pool.

If the interest rate (discount rate) is flat at 12%.

What is the value of the mortgage pool?

Round your answer to a dollar unit. e.g. if your answer is 8932.94, write down 8933.