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Maxim Financial Corp. is offering a new type of investment to families who are expecting to have a child. Typically, the investment is made by
Maxim Financial Corp. is offering a new type of investment to families who are expecting to have a child. Typically, the investment is made by a parent or grandparent for a child at the child's birth. The buyer of the investment makes the following six payments to Maxim Financial Corp.: First birthday: $ 910 Second birthday: $ 910 Third birthday: $ 1,010 Fourth birthday: $ 850 Fifth birthday: $ 1,110 Sixth birthday: $ 950 After the child's sixth birthday, no more payments need to be made. When the child reaches age 65, he or she is entitled to $410,000 in cash. The relevant interest rate on this investment is 13 percent for the first six years and 7 percent for all subsequent years. Compute the value of the investment at the child's 65th birthday. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
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