NumPy has a number of financial functions:
The
fv()function calculates the so-called future value. The future value gives the value of a financial instrument at a future date, based on certain assumptions.The
pv()function computes the present value (see https://www.khanacademy.org/economics-finance-domain/core-finance/interest-tutorial/present-value/v/time-value-of-money). The present value is the value of an asset today.The
npv()function returns the net present value. The net present value is defined as the sum of all the present value cash flows.The
pmt()function computes the payment against loan principal plus interest.The
irr()function calculates the internal rate of return. The internal rate of return is the effective interested rate, which does not take into account inflation.The
mirr()function calculates the modified internal rate of return. The modified internal rate of return is an improved version of the internal rate of return.