## What Is GPF Interest?

Government or non-government personnel can use the General Provident Fund (GPF) as an excellent savings tool. This is calculated through an interest rate which is known as GPF interest. Employees contribute with a part of their salary, accumulating a balance in the GPF account, which will be refunded upon retirement.

This is a sample Provident Fund dataset based on various parameters.

**Step 1: Inserting Primary Data**

- Insert columns to store the variables and insert the primary data: Basic Salary, Interest Rate, Basic Increment, Individual and Company Contributions.

**Step2 : Calculating Basic Salaries for 7 Years**

- Enter the following formula in
**C5**and press**ENTER**. This formula will store the Basic Salary in**C5**.

`=G15`

- To calculate the Basic Salaries for the upcoming years, enter the formula in
**D6**and press**ENTER**.

`=D5*(1+$D$14)`

- Use the
**Fill Handle**to**AutoFill**the rest of the cells.

**Step 3: Determining Individual and Company Contributions**

- Use the following formula to calculate the Individual Contribution for the first year.

`=D5*$D$15*12`

- Drag down the Fill Handle to determine Individual Contributions for the upcoming years.

- Enter the following formula to calculate the Company Contributions.

`=D5*($G$14-$D$14)*12`

- To store the total Contributions, enter the following formula.

`=E5+F5`

**Step 4: Calculating Closing Balance**

- Enter the formula below in
**H5**. It will return the Closing Balance amount of the first year.

`=G5*(1+$G$14)`

- Store this value in
**C66**using the formula below.

`=H5`

- After that, use the
**Fill Handle**to**AutoFill**the rest of the cells.

- Enter the following formula to calculate the Closing Balance for the second year.

`=(C6+G6)*(1+$G$14)`

- Dag the Fill to AutoFill the rest of the cells. The Opening Balance column will automatically fill .

**Step 5: Calculating the Gross Total**

- Enter the following formula in
**E12**.

`=SUM(E5:E11)`

The formula uses **the SUM function** to return the total Individual Contribution.

- Drag the Fill Handle to the right to calculate the Company Contribution and Total Contributions.

- Store the final Closing Balance amount using the formula below.

`=H11`

## Practice Section

Practice here.

**Download Practice Workbook**

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