1. What is PPF?

The Public Provident Fund (PPF) is a long-term savings scheme with tax benefits in many countries. It has a maturity period of 15 years which can be extended in blocks of 5 years. This calculator projects the maturity value after 25 years.

2. How Does the Calculator Work?

The calculator uses the PPF maturity formula:

Where:

• \( Principal \) — Initial investment amount
• \( Rate \) — Annual interest rate (as decimal)
• \( Annual\ Contributions \) — Yearly deposits
• 25 — Number of years

Explanation: The formula accounts for compound interest on both the principal amount and each annual contribution.

3. Importance of PPF Calculation

Details: Calculating the maturity amount helps in financial planning, understanding the power of compounding, and comparing with other investment options.

4. Using the Calculator

Tips: Enter principal amount in dollars, interest rate in percentage (without % sign), and annual contribution amount. All values must be non-negative.

5. Frequently Asked Questions (FAQ)

Q1: What is the typical interest rate for PPF?
A: Interest rates vary by country and are typically set by the government. Current rates range between 7-8% in most countries.

Q2: Can I withdraw before 25 years?
A: Partial withdrawals are typically allowed after 6-7 years, but this calculator assumes full maturity at 25 years.

Q3: Are PPF contributions tax-deductible?
A: In many countries, PPF contributions qualify for tax deductions under specific sections of tax laws.

Q4: How often is interest compounded?
A: Interest is typically compounded annually and credited at the end of each financial year.

Q5: Can I increase my annual contributions?
A: Yes, you can vary your annual contributions, but this calculator assumes a fixed annual amount for simplicity.