1. What is a PPF Compound Interest Calculator?

Definition: This calculator estimates the maturity value of a Public Provident Fund (PPF) account based on annual deposits, interest rate, and investment period.

Purpose: It helps investors plan their long-term savings by projecting the growth of PPF investments with compound interest.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( M \) — Maturity value ($)
• \( P \) — Annual deposit ($)
• \( i \) — Annual interest rate (decimal)
• \( n \) — Investment period (years)

Explanation: The formula accounts for annual compounding where deposits are made at the beginning of each year.

3. Importance of PPF Calculations

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, interest rate (default 7.1% or 0.071), and investment period in years (default 15). All values must be > 0.

5. Frequently Asked Questions (FAQ)

Q1: Why does PPF use this specific formula?
A: This formula accounts for annual contributions made at the beginning of each year and compounding interest.

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

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

Q4: Can I make monthly deposits instead?
A: This calculator assumes annual deposits. For monthly, you'd need a different formula accounting for more frequent compounding.

Q5: Does this include tax benefits?
A: No, this only calculates the maturity amount. PPF offers EEE (Exempt-Exempt-Exempt) tax benefits separately.