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: $ 900
Second birthday: $ 900
Third birthday: $ 1,000
Fourth birthday: $ 1,000
Fifth birthday: $ 1,100
Sixth birthday: $ 1,100
After the child’s sixth birthday, no more payments are made. When the child reaches age 65, he or she receives $231,000. If the relevant interest rate is 9 percent for the first six years and 6 percent for all subsequent years, what is the value of the policy at the child's 65th birthday?