Problem 5-60 Future Value and Multiple Cash Flows [LO 1) 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: First birthday: $ 930 Second birthday: $ 930 Third birthday: $ 1,030 Fourth birthday: $ 1,030 Fifth birthday: $ 1,130 Sixth birthday: $ 1,130 After the child's sixth birthday, no more payments are made. When the child reaches age 65, he or she receives $240,000. If the relevant interest rate is 10 percent for the first six years and 6 percent for all subsequent years, 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, e.g., 32.16.) Child's 65th birthday B D E F G H I 3 Fowler Credit Bank is offering 6.7 percent compounded daily on its savings accounts. If you deposit $7,000 today, how much will you have in the account in 5 years? In 10 years? In 20 years? BOLA $ Interest rate Times compounded per year Deposit Number of years Number of years Number of years 6.70% 365 7,000 5 10 20 11 12 13 14 Complete the following analysis. Do not hard code values in your calculations. All answers should be positive. 15 16 17 Value in 5 years Value in 10 years 18 19 20 21 Value in 20 years Sheet1 Y