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Finance question thanks for help An insurance company is offering a new policy to its customers. Typically, the policy is bought by a parent or
Finance question thanks for help
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 First birthday: $ 780 Second birthday: S 780 Third birthday: $ 880 Fourth birthday: S 850 Fifth birthday: 980 Sixth birthday: 950 After the child's sixth birthday, no more payments are made. When the child reaches age 65, he or she receives $280,000. The relevant interest rate is 10 percent for the first six years and 7 percent for all subsequent years. Find the future value of the payments at the child's 65th birthday. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Future valueStep by Step Solution
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