numpy.ppmt() in Python

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

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 as per the principal value only.

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:

# Python program explaining  
# ppmt() 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.ppmt(0.10 / 12, 12 * 12,  10, 000)  
  
# Here fv = 0 ; Also Default value of fv = 0  
print("Solution : ", Solution)  