Time for action – determining the number of periodic payments

Consider a loan of 9,000 at a rate of 10 percent with fixed monthly payments of 100.

Find out how many payments are required with the NumPy nper function.

print "Number of payments", np.nper(0.10/12, -100, 9000)

The number of payments would be shown as follows:

Number of payments 167.047511801

What just happened?

We determined the number of payments needed to pay off a loan of 9,000 with an interest rate of 10 percent and monthly payments of 100. The number of payments returned was 167.