Compute EMIs for a loan using the numpy or scipy libraries.

Numpy methods used to compute EMI:

numpy.ppmt() in Python

numpy.ppmt(rate, nper, pv, fv, when = ‘end’) : This financial function helps user to compute payment value as per the principal value only.

Parameters :
rate : [scalar or (M, )array] Rate of interest as decimal (not per cent) per period
nper : [scalar or (M, )array] total compounding periods
fv : [scalar or (M, )array] Future value
pv : [scalar or (M, )array] present value
when : at the beginning (when = {‘begin’, 1}) or the end (when = {‘end’, 0}) of each period.Default is {‘end’, 0}

Return : Payment value as per the principal value only

numpy.ipmt() in Python

numpy.ipmt(rate, nper, pv, fv, when = ‘end’) : This financial function helps user to compute payment value as per the interest only. i.e. returns the interest part.

Parameters :
rate : [scalar or (M, )array] Rate of interest as decimal (not per cent) per period
nper : [scalar or (M, )array] total compounding periods
fv : [scalar or (M, )array] Future value
pv : [scalar or (M, )array] present value
when : at the beginning (when = {‘begin’, 1}) or the end (when = {‘end’, 0}) of each period.Default is {‘end’, 0}

Return : Payment value ie. the interest part of it.