1. What is a PPF Calculator Year Wise?

Definition: This calculator estimates the maturity value of a Public Provident Fund (PPF) account with annual deposits, considering compound interest year by year.

Purpose: It helps investors plan their long-term savings by projecting PPF account growth over time.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( Maturity \) — Final maturity value ($)
• \( P \) — Annual deposit amount ($)
• \( i \) — Annual interest rate (decimal)
• \( n \) — Investment period (years)
• \( k \) — Current year in calculation

Explanation: Each annual deposit compounds differently based on when it was deposited, with earlier deposits earning more interest over time.

3. Importance of PPF Calculation

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

4. Using the Calculator

Tips: Enter the annual deposit amount, interest rate (default 7.1% or 0.071), and investment period (default 15 years). All values must be positive.

5. Frequently Asked Questions (FAQ)

Q1: Why does each deposit compound differently?
A: Deposits made earlier have more time to earn compound interest compared to later deposits.

Q2: What's the typical PPF interest rate?
A: As of 2023, PPF offers 7.1% interest (0.071 decimal), but this changes quarterly.

Q3: What's the minimum investment period?
A: PPF has a 15-year lock-in period, extendable in 5-year blocks.

Q4: Can I deposit more than once per year?
A: Yes, but this calculator assumes one annual lump sum deposit for simplicity.

Q5: Are there tax benefits?
A: Yes, PPF offers EEE (Exempt-Exempt-Exempt) tax status in many countries.