When will one lakh rupee become one crore rupee if I Invested in PPF?

One lakh rupee invested in PPF will become one crore rupee in around 23 years, assuming an interest rate of 7.1%. This is because PPF offers compound interest, which means that the interest earned on the investment is also reinvested and earns interest.

However, the actual time it takes to reach one crore rupees will depend on a few factors, such as the interest rate, the amount of money invested each month, and the frequency of investment. For example, if you invest the maximum amount of ₹1.5 lakh each year and the interest rate remains at 7.1%, you will reach one crore rupees in around 23 years. But, if the interest rate falls or you invest less money each month, it will take longer.

Imagine you have a magic money tree that grows a new ₹100 note every day. If you collect the notes every day and reinvest them in the tree, you will have ₹36,500 at the end of the year. This is because the new notes are growing on top of the old notes, and you are earning interest on your interest.

The same principle applies to PPF. When you invest money in PPF, you are earning interest on your investment. This means the money you make from interest is put back in, and it makes even more money from interest. Over time, this compounding effect can help you grow your money significantly.

If you are looking to reach one crore rupees in PPF, it is important to start investing early and to invest as much money as you can afford each month. You should also try to keep your money invested for the full 15-year tenure of the account. This will give your money the most time to grow and compound.

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The time it takes for one lakh rupee to become one crore rupee in PPF depends on a few factors, including the interest rate, the amount of the investment, and the frequency of the investment.

Assuming a constant interest rate of 7.1%, which is the current PPF interest rate, and an annual investment of ₹1.5 lakh (the maximum allowable investment), it will take approximately 35 years for one lakh rupee to become one crore rupee in PPF.

However, if you are able to invest more than ₹1.5 lakh per year, or if the interest rate increases, you can reach your goal of one crore rupee sooner. For example, if you invest ₹2.5 lakh per year, it will take approximately 27 years to reach your goal.

The time it takes for one lakh rupees to become one crore rupee in a Public Opportune Asset (PPF) will rely upon the loan cost presented by the PPF and the building recurrence.

At this point, the loan cost on PPF is set by the public authority and is dependent on future developments each quarter. Expecting a typical loan cost of 7% per annum, accumulated yearly, it would require roughly 35 years for one lakh rupees to develop into one crore rupee in a PPF account.

Nonetheless, it's vital to take note of that the loan cost on PPF can differ, and it is constantly prescribed to check the ongoing loan fee prior to going with any speculation choices.

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