A life insurance policy in which you make monthly payments of 85 pesos for 20 years (240 periods) has a payoff of 30,600.

What is the annualized rate?

This is where i get confused.

Using the pv functions in the BA plus, i get a monthly IRR of 0.31947663.

To get the annual return should i multiple it by 12? 3.83%

Or raise it by 12

(1.00319477^12) -1 = 3.90%

Thank you.

Ps. When using the CF flow and IRR function

Cf0 = 0

C01=-85

F01= 240

C02=30,600

The IRR is 0.31711702 off by 0.00235962. Should they both equate?