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Insurance 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 detail of the policy are as follows: The purchaser (Say, the parent) makes the following six payments to the insurance company 1st Birthday: $750 2nd Birthday: $750 3rd Birthday: $850 4th Birthday: $850 5th Birthday: $950 6th Birthday: $950 After the child’s sixth birthday, no more payments are made. When the child reaches age 65, he or she receives $350,000. If the relevant interest rate is 11% for the first 6 years and 7% for all subsequent years, is the policy worth buying? *Using excel

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Financial Management, Finance

Category:- Financial Management
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