Question: Is anyone can help me about this question? I got a wrong answer Time remaining: 2:13:50 1.00 points An insurance company is offering a new
Time remaining: 2:13:50 1.00 points 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: 780 780 First birthday Second birthday Third birthday Fourth birthday Fifth birthday Sixth birthday 980 After the child's sixth birthday, no more payments are made. When the child reaches ago 65, he or she receives $210,000. If the relevant interest rate is 12 percent for the first six years and 6 percent for all subsequent ybars, what is the value of the policy at the child's 65th birthday? (Do not round intermediate calculations and round your answer to 2 decimal places, o.g., 32.16.) Child's 65th birthday $ 2,44,673.87 References eBook & Resources Worksheet Leaming Objective: 05-01 Determine the future and present value of investments with multiple cash flows. Difficulty: 3 Challenge Section: 5.2 Valuing Level Cash Flows: Annuities and Porpotuities
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