Business, 14.11.2019 03:31 gracie6313
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: $ 760
second birthday: $ 760
third birthday: $ 860
fourth birthday: $ 850
fifth birthday: $ 960
sixth birthday: $ 950
after the child’s sixth birthday, no more payments are made. when the child reaches age 65, he or she receives $260,000. 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: future value $
Answers: 2
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An insurance company is offering a new policy to its customers. typically, the policy is bought by a...
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