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rgkimball/fv.py

Created January 21, 2017 19:47
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Future Value of a stream of cash flows and an initial investment
Raw
fv.py
# In 000's
pv = 400
savings_rate = 0.10
ir = 0.025
periodicity = 4
years = 20
cf = pv * savings_rate
nper = periodicity * years
irper = ir / periodicity
cfper = cf / periodicity
terminal_value = pv * (1 + irper) ** nper
sum_of_cfs = 0
for n in range(nper):
this_cf = cfper * ((1 + irper) ** n)
print("CF in period %d = %0.2f" % (n, this_cf))
sum_of_cfs += this_cf
fv = terminal_value + sum_of_cfs
print("FV of savings = ${:,.2f}".format(fv))
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