Financial functions

NumPy has a number of financial functions, as follows:

• 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. 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.

• The nper function returns the number of periodic payments.

• The rate function calculates the rate of interest.