  # numpy.pv () in Python

NumPy | Python Methods and Functions

Parameters :

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. `

Solving the equation:

` 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 the pv () function `      ` import ` ` numpy as np `  ` "" "`  ` Question: `     ` What is the current value (eg initial investment) `  ` investment that should be \$ 15692.93 after 10 `  ` years of saving \$ 100 each month? `  ` Pre Let`s assume the interest rate is 5% (per annum) monthly. `  ` "" "`   ` `  ` # evaluate np pmt fv `   ` Solution ` ` = ` ` np.pv (` ` 0.05 ` ` / ` ` 12 ` `, ` ` 10 ` ` * ` ` 12 ` `, ` ` - ` ` 100 ` `, ` ` 15692.93 ` `) `      ` print ` ` (` ` "present value (fv):" ` `, Solution) `     Output:    p resent value (fv): -100.000671316   Link:  https://docs.scipy.org/doc/numpy-1.13.0/reference/generated/numpy.pv.html