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%
Ps. When using the CF flow and IRR function
Cf0 = 0
The IRR is 0.31711702 off by 0.00235962. Should they both equate?