Problem 6-70 Future Value and Multiple Cash Flows [LO1]

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:	$	900
Second birthday:	$	900
Third birthday:	$	1,000
Fourth birthday:	$	850
Fifth birthday:	$	1,100
Sixth birthday:	$	950

After the child?s sixth birthday, no more payments are made. When the child reaches age 65, he or she receives $400,000. The relevant interest rate is 12 percent for the first six years and 7 percent for all subsequent years.

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