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Exercise

Calculating the number of periods

One real-life example that uses these functions is calculating how long it will take you to reach a certain financial goal, be it growing your wealth, saving for something specific, or paying off debt.

How long will it take you to save USD 30,000 if you save USD 1,250 per quarter invested in a fund that offers 4.5% annual returns compounded quarterly?

Instructions

100 XP
  • Import the numpy_financial package using the alias npf.
  • Use the npf.nper() function to calculate how long it will take you to reach your savings goal based on the information above and save this to number_periods.
  • Print the result.