numpy.ipmt() in Python
Last Updated :
29 Nov, 2018
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numpy.ipmt(rate, nper, pv, fv, when = ‘end’)
: This financial function helps user to compute payment value as per the interest only. i.e. returns the interest part.
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 ie. the interest part of it.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 == 0Code:
# Python program explaining
# ipmt() 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 60 %
'''
Solution = np.ipmt(0.6 / 12, 2 * 12, 1 * 12, 10000)
# Here fv = 0 ; Also Default value of fv = 0
print("Solution - ipmt value : ", Solution)
Solution - ipmt value : 801.4432933339593