numpy.fv(rate, nper, pmt, pv, when = ‘end’) : This financial function helps user to compute future values.
Parameters :
rate : [scalar or (M, )array] Rate of interest as decimal (not per cent) per period
nper : [scalar or (M, )array] total compounding periods
pmt : [scalar or (M, )array] fixed payment
pv : [scalar or (M, )array] present value
when : at the beginning (when = {‘begin’, 1}) or the end (when = {‘end’, 0}) of each period. Default is {‘end’, 0}
Return :
value at the end of nper periods
Equation being solved :
fv + pv*(1+rate)**nper + pmt*(1 + rate*when)/rate*((1 + rate)**nper - 1) == 0
or when rate == 0
fv + pv + pmt * nper == 0
Code 1 : Working
# Python program explaining fv() function import numpy as np ''' Question : Future value after 10 years of saving $100 now, with an additional monthly savings of $100. Assume the interest rate is 5% (annually) compounded monthly ? ''' # rate np pmt pv Solution = np.fv(0.05/12, 10*12, -100, -100) print("Solution : ", Solution) |
Output :
Solution : 15692.9288943
References :
https://docs.scipy.org/doc/numpy-1.13.0/reference/generated/numpy.fv.html#numpy.fv
.
Attention geek! Strengthen your foundations with the Python Programming Foundation Course and learn the basics.
To begin with, your interview preparations Enhance your Data Structures concepts with the Python DS Course.
