numpy.pmt() in Python

numpy.pmt(rate, nper, pv, fv, when = ‘end’): This financial function helps user to compute payment value as per the principal and interest.

Parameters :
rate : [scalar or (M, )array] Rate of interest as decimal (not per cent) per period
nper : [scalar or (M, )array] total compounding periods
fv : [scalar or (M, )array] Future value
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 :Payment value



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:

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# Python program explaining 
# pmt() function 
  
import numpy as np 
  
''' 
Question : 
  
monthly payment needed to pay off a $10, 000 loan
in 12 years at an annual interest rate of 10 %
'''
  
# rate np  pv 
Solution = np.pmt(0.10 / 12, 12 * 1210, 000
  
# Here fv = 0 ; Also Default value of fv = 0 
print("Solution : ", Solution) 

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Output:

Solution :  -0.1195078262827336


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