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Bank Interest
Calculate simple and compound interest on savings or loans.
Results
Simple interest: Capital × Rate × Duration. Compound interest: Capital × (1+Rate)^Duration − Capital.
📐 Simple and compound interest
Simple interest = principal × rate × time
Compound value = principal × (1 + rate)time
Compound interest = final value − principal
Compound value = principal × (1 + rate)time
Compound interest = final value − principal
📊 Simple vs compound (10,000 MAD, 5%)
| Term | Simple interest | Compound value |
|---|---|---|
| 1 year | 500 MAD | 10,500 MAD |
| 5 years | 2,500 MAD | 12,763 MAD |
| 10 years | 5,000 MAD | 16,289 MAD |
| 20 years | 10,000 MAD | 26,533 MAD |
💼 Interest scenarios
20,000 MAD, 4% simple, 3 years
Interest = 20,000 × 4% × 3 = 2,400 MAD.
20,000 MAD, 4% compound, 3 years
Value = 20,000 × 1.04³ = 22,497 MAD, i.e. 2,497 MAD interest.
💡 Practical tips
- Compound interest grows much faster over the long run, so start saving early.
- Check whether the rate is annual or monthly before calculating.
- On loans, compounding works against you; on savings, it works for you.
⚠️ Limits and disclaimer
- The calculation is theoretical and excludes taxes or fees on interest.
- Real bank rates may be lower.
Official sources: Bank Al-Maghrib (bkam.ma) · Moroccan Banking Group (GPBM) · standard banking contracts.
Last updated: February 2026.
Last updated: February 2026.
❓ Frequently asked questions
What is the difference between simple and compound interest?
Simple interest is computed on the principal only; compound interest is computed on the principal plus accumulated interest.
Which is better for a saver?
Compound interest, because it grows the money faster over time.
How do I compute compound interest?
Multiply the principal by (1 + rate) raised to the number of years.