Problem $6-75$ Future Value and Multiple Cash Flows $($LO$1)$

$($table version$)$

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: Use Appendix A:

After the child's sixth birthday, no more payments are made. When the child

reaches age $65,$ he or she receives $$500,000.$ The relevant interest rate is $12\%$

for the first six years and $8\%$ for all subsequent years. Calculate the future value

of the payments at the child's ${65}^{th}$ birthday. $($Do not round intermediate

calculations. Round the final answer to $2$ decimal places. Omit $ sign in your

response.$)$

Future value $