1. What is a PPF Calculator for 5 Years?

Definition: This calculator estimates the maturity value of a Public Provident Fund (PPF) investment over 5 years.

Purpose: It helps investors project their returns from PPF investments with annual contributions.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( M \) — Maturity value ($)
• \( P \) — Annual deposit ($)
• \( i \) — Interest rate (decimal, default 0.071 for 7.1%)

Explanation: The formula accounts for annual compounding of interest on each deposit over the 5-year period.

3. Importance of PPF Calculation

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

4. Using the Calculator

Tips: Enter your planned annual deposit amount and the current PPF interest rate (default 7.1%). All values must be > 0.

5. Frequently Asked Questions (FAQ)

Q1: Is the interest compounded annually in PPF?
A: Yes, PPF interest is compounded annually and credited at the end of each financial year.

Q2: What's the current PPF interest rate?
A: As of 2023, it's 7.1% (0.071 decimal), but this may change quarterly.

Q3: Can I calculate for more than 5 years?
A: This calculator is specifically for 5-year projections. The formula would need adjustment for different periods.

Q4: Are PPF contributions tax-deductible?
A: In many countries, PPF contributions qualify for tax deductions under relevant sections.

Q5: What's the minimum/maximum annual deposit?
A: Typically minimum $500 and maximum $150,000 annually, but check local regulations.