Concepts These problems require more thought... Make sure your answers show your effort 18. Juan is investing money for his kids' education: 2. Suppose he invests SS0 a month for 5 years into an account caring 8% compounded monthly. After 5 years, he leaves the money, without making additional deposits, in the account for another 13 years. How much will he have in the end? b. Suppose he puts off making investments for the first 5 years, and instead made deposits of $50 a month for the next 13 years into an account earning 8% compounded monthly. How much will he have in the end? c. Which is a better deal for his child? Why? Justify your answer. Should he do something else? 19. Mike plans to make contributions to his retirement account for 15 years. After the last contribution, he will start withdrawing S10,000 a quarter for 10 years. Assuming Mike's account carns 8% compounded quarterly, how large must his quarterly contributions be during the first 15 years, in order to accomplish his goal? 20. Kendra wants to be able to make withdrawals of $60,000 a year for 30 years after retiring in 35 years. How much will she have to save each year up until retirement if her account earns 7% annual interest? 21. You have $5,000 to invest, and want it to grow to $20,000 in ten years. What interest rate would you need to find to make this possible? Bonus problems you need to use logarithms or Excel. Show your work for both! Only do this if you have had previous experience with Logs. 22. Pat deposits 56,000 into an account eaming 4% compounded monthly. How long will it take the account to grow to $10,000? 23. Kay is saving $200 a month into an account earning 5% interest. How long will it take her to save $20,000? 24. James has $3,000 in credit card debt, which charges 14% interest. How long will it take to pay off the card if he makes the minimum payment of S60 a month? 25. Chris has saved S200,000 for retirement, and it is in an account carning 6% interest. If she withdraws $3,000 a month, how long will the money last