Would it be better to pay off a $1000 loan at 4% over 15 years or at 10% over five years ?

To determine which option is better, we need to compare the total amount paid in each case. Let's calculate the total repayment amount for both scenarios:

Option 1: $1000 loan at 4% over 15 years
To calculate the total repayment amount, we need to consider the principal (loan amount) and the interest over the loan term.
The formula to calculate the total repayment amount for a loan with simple interest is: Total Repayment = Principal + (Principal * Interest Rate * Loan Term)

Principal = $1000
Interest Rate = 4% = 0.04 (converted to decimal)
Loan Term = 15 years

Total Repayment = $1000 + ($1000 * 0.04 * 15) = $1000 + $600 = $1600

Option 2: $1000 loan at 10% over 5 years
Using the same formula to calculate the total repayment amount:

Principal = $1000
Interest Rate = 10% = 0.10 (converted to decimal)
Loan Term = 5 years

Total Repayment = $1000 + ($1000 * 0.10 * 5) = $1000 + $500 = $1500

Comparing the two options, we can see that Option 2 has a lower total repayment amount. Therefore, it would be better to pay off the $1000 loan at 10% over 5 years rather than at 4% over 15 years.

Remember, this comparison assumes that both options are available and feasible for you to choose. Additionally, make sure to consider your own financial situation, payment ability, and other factors before making a decision.