Introduction to Financial Concepts in Python
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Learn the time value of money, NPV and IRR in Python, then build a mortgage payment simulator and a personal budgeting tool in hands-on exercises.
The time value of money shapes choices about loans, savings and company investments. You work through growth rates, discounting and inflation in Python, then use net present value and internal rate of return to choose between competing projects. Later lessons apply the same calculations to a home loan and a household budget, showing how interest, rising costs and steady investing change personal wealth over time.
What You Will Achieve
- Calculate present and future values in Python, including values adjusted for inflation
- Compare two project proposals using NPV, IRR and the weighted average cost of capital
- Estimate a monthly mortgage payment and split each payment into interest and principal
- Forecast salary, expenses and net worth to plan saving and investing over many years
Program Overview
Time Value of Money and Discounting
Core finance ideas worked out in Python: how money grows, how future amounts are discounted, and how inflation reduces what they are worth.
- Growth, rate of return and compound interest
- Present and future value
- Discount factors, depreciation and inflation
- Net present value of project cash flows
Data-Driven Project and Financing Decisions
Acting as a company’s CEO, you weigh competing projects and ways to fund them with IRR, NPV and the cost of capital.
- Internal rate of return
- Debt and equity financing and WACC
- Comparing NPV with IRR
- Projects of different lifespans and the equivalent annual annuity approach
Mortgage Simulation and Personal Budgeting
Two applied projects: a mortgage payment simulator for a home in Hoboken and a budgeting tool for a new job in San Francisco.
- Amortization, interest and principal payments
- Home equity with rising and falling housing prices
- Salary, taxes, expenses and inflation forecasts
- Net worth, investing and compound interest over time
Certificate Awarded (Paid)
Job Outlook
These skills are used in corporate finance work that compares projects and financing options, in mortgage and loan analysis, and in personal financial planning where income, costs and savings are forecast.
Good for: Python learners who want to apply their coding to core finance calculations such as project appraisal, mortgage payments and long-term savings plans.
Keep in mind: The mortgage and budgeting projects follow set scenarios in Hoboken and San Francisco, so using them for your own finances means swapping in your own figures.
Bottom line: It ties finance measures such as NPV and IRR to two applied Python projects, a mortgage simulator and a personal budget plan.
Frequently Asked Questions
Which measures does the course use to compare investment projects?
Projects are judged with net present value, internal rate of return and the weighted average cost of capital. For projects with different lifespans, the lessons add the equivalent annual annuity approach.
What scenarios do the mortgage and budgeting projects follow?
In the mortgage project you are newly married and buying a home in Hoboken, New Jersey. In the budgeting project you have a new data scientist job and are looking for an apartment in San Francisco.
How does the course deal with inflation?
Inflation appears twice. Early lessons adjust future values for inflation, and the budgeting project forecasts expenses that grow with inflation and ends by working out an inflation-adjusted net worth.
Are taxes part of the budgeting project?
Yes. The budgeting chapter starts with salary and taxes, then moves on to monthly expenses, savings, salary growth and the cost of living before turning to net worth and investing.
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