To pay for a home improvement project that totals $20,000, a homeowner is choosing between two different credit card loans with an interest rate of 8%. The first credit card compounds interest monthly, while the second credit card compounds weekly. The homeowner plans to pay off the loan in 10 years.
Part A: Determine the total value of the loan with the monthly compounded interest. Show all work and round your answer to the nearest hundredth.
Part B: Determine the total value of the loan with the weekly compounded interest. Show all work and round your answer to the nearest hundredth.
Part C: What is the difference between the total interest accrued on each loan? Explain your answer in complete sentences.
