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?
This exercise is part of the course
Bond Valuation and Analysis in Python
Exercise instructions
- Import the
numpy_financialpackage using the aliasnpf. - 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 tonumber_periods. - Print the result.
Hands-on interactive exercise
Have a go at this exercise by completing this sample code.
# Import numpy_financial package using alias npf
____
# Calculate how long it will take to reach the savings goal
number_periods = ____
# Print the result
____