1. PPF (maturity on 1st April 2017) as on 31st March, 2010: Rs. 2.

90 la h
Renuka wants to supplement her retirement corpus after 27 years by regularly investing in her PPF A/c Rs. 1 !""" every #uarter till its $ue maturity! as well as throughout its four e%tensions each of &year blocks. 'he amounts are propose$ to be investe$ in the first five $ays of April! (uly! )ctober an$ (anuary every financial year beginning imme$iately. Renuka wants to know the appro%imate maturity amount of his PPF A/c after the propose$ four block perio$ e%tensions. 'he same woul$ be *******. A+ Rs. 7,!1-!.7. /+ Rs. 7 ! 7! ,0 1+ Rs. , !",!2"7 2+ Rs. ,2!22!1-1 !olution: PPF A/c balance as on 31."3.2"1" 4uarterly invt. Amt. Rate of interest 1um&interest invt every year en$ 9ears till $ue maturity of A/c. "1."0.2"17 :umber of years in e%tension blocks 'otal number of years investment ma$e ;aturity amount of PPF after 0 e%tensions 2,90,000 1",000 #$ p.a. %3,000 7 20 27 7#,19,%3 % 1 """5607,8 7,853/07,852/07,851/0+

F<6,8!27!&.3"""!&2-""""!"+

2.

A=har is inten$ing to subscribe for PPF A/c > also e%ten$ing it for 3 blocks. ?n case A=har wants to with$raw from the accumulate$ fun$ of his PPF account! what will be the ma%imum e#uate$ yearly with$rawal which can be availe$ by him from his propose$ PPF account $uring the first e%tension block@ 6Assume all with$rawals are ma$e on 1st April of the respective years+. A+ Rs. 0!20! 0" /+ Rs. 2! 0!720 1+ Rs. 2!12!27" 2+ Rs. 2!,.! 0" !olution:

3.

/ase$ on the above #uestion! Ahat maturity value will Rakesh get at the en$ of the whole term from his PPF account if he makes with$rawals of Rs. 2!""!""" on 1st April of every year in the first e%tension block@

&.

Priya 6opene$ on "1&"1&1--7+ after with$rawal of Rs. 3 lakh ma$e on "1&".&2"", the balance of PPF A/c is Rs. .!.7!,33. Priya has informe$ you that she is contributing Rs. "!""" per annum in her PPF account since inception. Bhe wants to know what ma%imum amount she can with$raw from this account on 1st (anuary 2""-. A+ Rs. 3.33 lakh /+ Rs. 2.1- lakh ') (il 2+ :one of the above 5Aith$rawal is possible only once in a financial year.

".

PankaC wants to know from you! what is the ma%imum amount that he can with$raw to$ay from his PPF account as per PPF rules. :o ?nvestment has been ma$e by him in this Financial 9ear till $ate. )utstan*in+ as on PPF A,c -alanc. Rs. 31&3&2""" 0"!""" 31&3&2""1 , !""" 31&3&2""2 1!3 !""" 31&3&2""3 2!1"!""" 31&3&2""0 2!- !""" 31&3&2"" 3!0 !""" 31&3&2"". 0!1 !""" 31&3&2""7 !" !""" 31&3&2"", 3!,"!""" 31&3&2""0!3"!""" A+ Rs. 2!"7! "" /+ Rs. 2!1 !""" 1+ Rs. 1!"7! "" 2+ Rs. 1!-"!""" !olution: As per PPF Rules! /eginning from 7th year an$ every year thereafter! an account hol$er can with$raw "8 of the balance to his cre$it at the en$ of imme$iate 0th or the 1st previous F9 ! whichever is lower. /alance on 0th prece$ing year 01 """ "8 of outstan$ing balance 2"7 "" 01 """5". /alance on 1st prece$ing year 2""03"""" "8 of outstan$ing balance 21 """ 03""""5". De is eligible to with$raw lower of the two amounts! Rs. 2!"7! "" or Rs. 2!1 !""" 'herefore! he can with$raw ma%imum 207"00 01 """/2

%.

PPF (Account op.n.* on 3r* April, 2009): Rs. 70,000 (/alanc. as on 20.02.2010) Eanishka age$ 20 years wants to accumulate part of the fun$s through her PPF A/c F ,8 p.a. for her propose$ retirement at her age of years. Bhe inten$s to accumulate Rs. 0" lakh till ;arch in the year of retirement. Bhe woul$ e%ten$ her PPF A/c. after its $ue maturity in three block

perio$s of years! an$ woul$ park the final maturity procee$s in risk free instruments F .. " 8 p.a. till her retirement. Bhe woul$ invest the ma%imum permissible amount every year in the beginning of April but only in the e%ten$e$ block of perio$s. Bhe asks from you! what minimum amount she shoul$ invest every year in the beginning of April till PPF AccountGs $ue maturity before the e%tension perio$. A+ Rs. -!3," /+ Rs. 12!7 . 1+ Rs. 1"!13 2+ Rs. 1,!31" !olution: Amount targete$ to be accumulate$ till retirement 6year ;ar.H01+ 0 !"""!""" 2ue ;aturity $ate of PPF A/c. 1st April! 2"2 'hree e%ten$e$ blocks maturity 1st April! 2"0" Final maturity procee$s are parke$ in risk free instruments for 1 year! till ;ar.! 2"01 Risk free rate of return .. "8 p.a. Amount re#uire$ to be accumulate$ in PPF A/c. till 31st ;ar.H0" 3 !7 !,.- 60""""""/ 617".". ++ Amount re#uire$ to be accumulate$ till 31st ;arch! 2"2 when Rs. 7"!""" is investe$ in begin&April every year 3.!-1" &P<6".",!1 ! &7 .""! 37 ,.-!"+ Amount alrea$y investe$ in April! 2""7"!""" Accumulation in Account as on 31st ;ar.! 2"1" 7 !."" 7""""51.", Amount with accrue$ interest nee$e$ every year 1"!-02 &P;'6".",!1 !&7 .""! 3.-1"!"+ in the 1 &year perio$ to accumulate this amount till ;arch! 2"2 'hus! amount re#uire$ to be investe$ in April every year from April! 2"1" to April! 2"20 1"!131 1"-02/1.", 'hus! minimum amount re#uire$ to be investe$ every year Rs. 10,13"

7.

Pu-lic Pro0i*.nt Fun* (A,c op.n.* as on 2# March 200") /alanc. as on 1st April 2009 Rs. &,1",000 9ou have a$vise$ Ialchan$ to use his PPF account e%clusively for accumulating part of the fun$s for the marriage of his $aughter. Bo he woul$ contribute the ma%imum permissible investment limit in PPF A/c. on the last working $ay of every financial year from now onwar$s till the original term e%pires in this PPF account. After the original maturity! the account shoul$ be e%ten$e$ for a term of &year block but without any contribution in the e%ten$e$ perio$. Ialchan$ wants to know what maturity amount he will get from this account at the en$ of the e%ten$e$ perio$. :o contribution has been ma$e till $ate in the account for this financial year. Assume that the current PPF A/c. regime continues for the whole perio$. A+ Rs. 31.33 Iakh /+ Rs. 2,.". Iakh 1+ Rs. 27.1- Iakh 2+ Rs. 2.." Iakh !olution: Account opening $ate 3/2,/2"" ;aturity $ate 1/0/2"2" /al as on "1/"0/"01 """ Rate of interest ,8 As he is a$vise$ to contribute Rs. 7"!"""/& in the en$ of every financial year! the number of installments to be contribute$ before maturity 11 9ear 2"1" to 2"2"! ;arch every year ;a%imum permissible contribution 7"""" Accumulate$ fun$s in A/c. before $ue maturity 2!132!,10 F<6,8!11!&7""""!& 01 """!"+ 'his account is e%ten$e$ without further contribution for years! hence maturity value after e%ten$e$ perio$ 3!133!,"0 2132,1051.",J

#.

PPF A,c (Matur.s on 1!t April 201") as on 31st May, 2009: 9 la hs A$iti plans to invest regularly on a #uarterly basis an amount of Rs. .!""" in her PPF A/c for the rest of its

tenure. 'he amounts are propose$ to be $eposite$ in the first five $ays of (uly! )ctober an$ 2ecember an$ April! respectively. Bhe has ma$e no transactions in her PPF A/c since April this year. A$iti wants to know the appro%imate maturity amount of her PPF A/c. 'he same is *******.

!olution: 4uarterly 1ontribution

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9. PPF ()p.n.* on 3110312001) Rs. &,10,1%%

?n F9 2""7&", 2r. ;ishra has contribute$ Rs. "!""" to his PPF account. 2r. ;ishra is consi$ering purchasing the new flat costing 1, lakhs from his own resources. For this how much loan can he take from his PPF account on 31&"3&2""-@ De has been contributing Rs. "!""" p.a 6at the en$ of every financial year+ in this account since opening of the account an$ inten$s to $o so in future as well. De has also ma$e a partial with$rawal from this fun$ on 31&"3&2""7 for Rs. 3"!""". A+ Rs. 0!1"!1.. /+ Rs. 1!20!, , 1+ Rs. 1!07!30. 2+ :il Ioan cannot be availe$ after the .th year.

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