# 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: $800

Second birthday:800

Third birthday: 900

Fourth birthday: 900

Fifth birthday: 1,000

Sixth birthday: 1,000

After the child's sixth birthday, no more payments are made. When the child reaches age 65, he or she receives $190,000. The relevant interest rate is 10 percent for the first 6 years and 6 percent for all subsequent years.