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An insurance company is offering a new policy to its customers. Typically the policy is bought by a parent or grandparent for a child at
An insurance company is offering a new policy to its customers. Typically the policy is bought by a parent or grandparent for a child at the child's birth. The details of the policy are as follows: The purchaser (say, the parent) makes the following six payments to the insurance company. After the child's sixth birthday, no more payments are made. When the child reaches age 65. he or she receives $410,000. If the relevant interest rate is 13 percent for the first six years and 7 percent for all subsequent years, what would the value of the deposits be when the policy matures7 (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Future value $
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