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+ 4

Numpy financial question

When calculating future value using the numpy financial package, why is the present value given as negative?

24th Nov 2021, 6:35 AM
Sonic
Sonic - avatar
5 Answers
+ 4
Sonic Money you invest in a future return is money not available to you any more. Essentially, you have spent it on a speculation for a return.
24th Nov 2021, 9:50 AM
Rik Wittkopp
Rik Wittkopp - avatar
+ 3
Because this is the amount of the contribution, you gave it ☺️
24th Nov 2021, 6:46 AM
Solo
Solo - avatar
24th Nov 2021, 6:39 AM
Sonic
Sonic - avatar
+ 2
Rik Wittkopp so the sign indicates whether you have spent the money or not?
24th Nov 2021, 8:33 PM
Sonic
Sonic - avatar
+ 2
Yes. Not all investments return the capital. In such cases, the money invested is a loss.
24th Nov 2021, 8:52 PM
Rik Wittkopp
Rik Wittkopp - avatar