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Although I spend a lot of time entering machine learning competitions on the data science website, Kaggle, there are other relevant uses of Python that also have business applications. In this post I intend to discuss one business application that Python can complete.
I think most adults have taken a loan out at some time in their life, so using Python to calculate interest will be a bonus that will allow an individual to determine if he can afford to make the loan repayments.
Principal — refers to the original sum of money invested in a financial instrument, loan or debt. The term is used to distinguish between the original amount invested and any interest, dividends or other earnings generated by that investment.
Interest rate is a key concept in finance that refers to the cost of borrowing money or the return on an investment. In the context of borrowing, an interest rate is the percentage of the loan amount that the lender charges the borrower for the use of the funds. The interest rate is usually expressed as an annual percentage rate (APR), which takes into account not only the interest charge but also any additional fees associated with the loan. The interest rate is an important factor for borrowers to consider when evaluating the cost of a loan and determining whether they can afford to repay it.
