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Jerber Corp. is offering a novel retirement plan. The plan targets grandparents who often give their grandchildren large amounts of money until the children reach
Jerber Corp. is offering a novel retirement plan. The plan targets grandparents who often give their grandchildren large amounts of money until the children reach school age. The buyer of the retirement plan (say, a grandparent) makes six annual payments to Jerber Corp. on each of the first six birthday's of a grandchild. First birthday: $ 870 Second birthday: $ 870 Third birthday: $ 970 Fourth birthday: $ 850 Fifth birthday: $1,070 Sixth birthday: $ 950 No more payments are made to Jerber Corp. after the child's sixth birthday. When the grandchild reaches the age of 65, he or she is promised to receive $370,000. If the relevant interest rate on this type of investment is 10 percent for the first six years, and 7 percent for all subsequent years. Compute the future value of the payments on the granchild's 65th birthday. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Future value
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