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Problem 6-70 Future Value and Multiple Cash Flows (LO1] An insurance company is offering a...

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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 purchaser (say, the parent) makes the following six payments to the insurance company: First birthday: $ 950 Second birthday: $ 950 Third birthday: $ 1,050 Fourth birthday: $ 850 Fifth birthday $ 1150 Sixth birthday: $ 950 After the child's sixth birthday, no more payments are made. When the child reaches age 65, he or she receives $450,000. The relevant interest rate is 15 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.) Answer is complete but not entirely correct. Future value $ 478,801.91 X

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