Future value of the payments at the child 65th birthday

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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 purchaser (say, the parent) makes the following six payments to the insurance company:

First birthday:$850
Second birthday:$850   
Third birthday:$950 
Fourth birthday:$850  
Fifth birthday:$1,050   
Sixth birthday:$950

After the child's sixth birthday, no more payments are made. When the child reaches age 65, he or she receives $350,000. The relevant interest rate is 10 percent for the first six years and 7 percent for all subsequent years.

Find the future value of the payments at the child's 65th birthday. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

FUTURE VALUE _________

Reference no: EM132652812

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