numpy.pv() in Python
Last Updated :
29 Nov, 2018
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numpy.fv(rate, nper, pmt, fv, when = 'end') : This financial function helps user to compute future values.
Parameters :
Python
Output :
rate : [array_like] Rate of interest as decimal (not per cent) per period nper : [array_like] total compounding periods pmt : [array_like] fixed payment fv : [array_like, optional] future value. Default = 0.0 when : at the beginning (when = {‘begin’, 1}) or the end (when = {‘end’, 0}) of each period. Default is {‘end’, 0}Return :
present value as per given parameters.Equation being solved :
fv + pv*(1 + rate)**nper + pmt*(1 + rate*when)/rate*((1 + rate)**nper - 1) = 0or when rate == 0
fv + pv + pmt * nper = 0Code 1 : Working
## Python program explaining pv() function
import numpy as np
'''
Question :
What is the present value (e.g., the initial investment)
of an investment that needs to total $15692.93 after 10
years of saving $100 every month?
Assume the interest rate is 5% (annually) compounded monthly.
'''
# rate np pmt fv
Solution = np.pv(0.05/12, 10*12, -100, 15692.93)
print("present value (fv) : ", Solution)
present value (fv) : -100.000671316Reference : https://docs.scipy.org/doc/numpy-1.13.0/reference/generated/numpy.pv.html
