Question

#The numpy function np.pv(rate, nper, pmt, fv=0, when='end') works like the Excel pv() function to calculate the present value of an annuity. The last two inputs (fv and when) are optional.

-Assuming that the annualized percentage interest rate is 4%. An annuity investment offers monthly payments of $30,000 per month for 5 years.

a. Calculate the present value this investment using the np.pv() function and print the answer.

b. Keeping the size and number of payments the same, graph the present value of the annuity vs. the discount rate for discount rates ranging from 0.01 to 0.20 in increments of .01. Put a title and axis labels on the plot

Answer 1

Formulas used :-

(a) Present Value=np.pv(C5/12,C4,-C3)

(b) Present value=np.pv(A10/12,$C$4,-$C$3)

i hope my efforts will be fruitful to you.....