1. What is a PPF Account Calculator?

Definition: This calculator estimates the maturity amount for a Public Provident Fund (PPF) account with annual deposits.

Purpose: It helps investors plan their long-term savings by projecting the future value of their PPF investments.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( M \) — Maturity amount ($)
• \( P \) — Annual deposit ($)
• \( i \) — Interest rate (in decimal, e.g., 0.071 for 7.1%)
• \( n \) — Investment period (years)

Explanation: The formula accounts for annual compounding of interest on both the principal and accumulated interest.

3. Importance of PPF Calculation

Details: PPF is a popular long-term savings scheme with tax benefits. Accurate projections help in financial planning and goal setting.

4. Using the Calculator

Tips: Enter the annual deposit amount, current interest rate (default 7.1%), and investment period (default 15 years). All values must be > 0.

5. Frequently Asked Questions (FAQ)

Q1: What is the current PPF interest rate?
A: As of 2023, the rate is 7.1% (0.071 decimal), but this changes quarterly.

Q2: What's the minimum investment period for PPF?
A: The minimum is 15 years, extendable in blocks of 5 years.

Q3: Can I change the annual deposit amount?
A: Yes, but the minimum is $500 and maximum is $150,000 per year.

Q4: Is the interest compounded annually?
A: Yes, PPF interest is compounded annually and credited at year-end.

Q5: Are the results guaranteed?
A: Results are projections based on current rates; actual maturity may vary if rates change.