An insurance company is offering a new product in the market
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Free InquiryAn insurance company is offering a new product in the market. This policy is intended to be bought by a parent for their child at birth. The purchaser shall make five annual payments, starting with $1,000 on the child’s first birthday and increasing $200 in subsequent years. No further payments are required. When the child reaches the age of 60, he or she will receive $100,000. The annual interest rate is 5%.
(d) Judge whether this policy is worth buying.
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