1. What is a PPF Calculator with Yearly Different Amounts?

Definition: This calculator estimates the maturity value of a Public Provident Fund (PPF) account when you make different yearly contributions.

Purpose: It helps investors plan their PPF investments when they can't contribute the same amount every year.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( Maturity \) — Total maturity value ($)
• \( Each\ Yearly\ Deposit \) — Amount deposited each year ($)
• \( i \) — Annual interest rate (in decimal, e.g. 0.071 for 7.1%)
• \( n \) — Total investment period (years)
• \( year \) — The specific year of deposit (1 to n)

Explanation: Each yearly deposit grows at compound interest for the remaining years until maturity.

3. Importance of PPF Calculation

Details: Accurate PPF calculations help in financial planning, tax savings estimation, and retirement planning.

4. Using the Calculator

Tips: Enter investment period (15 years default for PPF), interest rate (7.1% default), and different yearly deposit amounts. All values must be > 0.

5. Frequently Asked Questions (FAQ)

Q1: What is the current PPF interest rate?
A: As of 2023, it's 7.1% (0.071 decimal), but check current rates as they change quarterly.

Q2: What's the minimum/maximum investment period?
A: PPF has a 15-year minimum, extendable in 5-year blocks. The calculator works for any period.

Q3: Can I skip years in PPF?
A: Yes, but you won't earn interest for years with zero deposits (not shown in this calculator).

Q4: How does compounding work in PPF?
A: Interest is compounded annually and credited at year-end based on the lowest balance between 5th and last day of each month.

Q5: Are PPF returns tax-free?
A: Yes, PPF enjoys EEE (Exempt-Exempt-Exempt) status under most tax regimes.