numpy.ipmt() in Python (original) (raw)

Last Updated : 29 Nov, 2018

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 periodnper : [scalar or (M, )array] total compounding periodsfv : [scalar or (M, )array] Future valuepv : [scalar or (M, )array] present valuewhen : 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 == 0fv + pv + pmt * nper == 0

Code:

Python3 1== `

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)

`

Output:

Solution - ipmt value : 801.4432933339593