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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 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 $250,000. If the relevant interest rate is 11 percent for the first six years and 7 percent for all the subsequent years, is the policy worth buying?

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