Future Value and Multiple Cash Flows 5.67 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 pay- ments to the insurance company: First birthday: 500 Second birthday 600 Third birthday 700 Fourth birthday 800 Fifth birthday 900 Sixth birthday $1,000 After the child's sixth birthday, no more payments are made. When the child reaches age 65, he or she receives $275,000. If the relevant interest rate is 11 percent for the first six years and 7 percent for all subsequent years, is the policy worth buying