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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 childs birth. The details of the policy are as follows: The purchaser say the parent makes the following six payments to the insurance company:
First birthday: $
Second birthday: $
Third birthday: $
Fourth birthday: $
Fifth birthday: $
Sixth birthday: $
After the childs sixth birthday, no more payments are made. When the child reaches age he or she receives $
If the relevant interest rate is percent for the first six years and percent for all subsequent years, what is the value of the policy at the child's th birthday?
Note: Do not round intermediate calculations and round your answer to decimal places, eg
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