Future Value and Multiple Cash Flows [LO1] An insurance company is offer-ing 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: $700

Second birthday: $700

Third birthday: $800

Fourth birthday: $800

Fifth birthday: $900

Sixth birthday: $900

After the childs sixth birthday, no more payments are made. When the child reaches age 65, he or she receives $150,000. If the relevant interest rate is 9 percent for the first six years and 6 percent for all subsequent years, is the policy worth buying? (Hint, discount all of the cash flows both negative, payments to insurance, and positive, received from insurance)