Calculating future value
Calculating future value is an important step in building up to bond pricing as the process of pricing a bond is actually calculating future value in reverse. Here you will find the future value of an investment using the npf.fv()
formula from earlier.
This exercise is part of the course
Bond Valuation and Analysis in Python
Exercise instructions
- Import the
numpy_financial
package using the aliasnpf
. - Calculate the future value of an investment of USD 10,000 with top-ups of USD 5,000 each year for 30 years earning 5% annual interest and assign the result to
savings
. - Print the result.
Hands-on interactive exercise
Have a go at this exercise by completing this sample code.
# Import numpy_financial package using the alias npf
____
# Calculate the future value of an investment
savings = npf.fv(rate=____, nper=____, pmt=____, pv=____)
# Print the result
____