Posts tagged with 'irr'


More TVM–calculating the IRR

My insurance company allows me to pay for our car insurance by monthly premiums instead of the usual premium once every 6 months. For this option, they just divide the total six-monthly premium by six to give the monthly premium, and then charge a $5 “processing fee” per month on top. I decided to take a look at how much this actually cost me. (For background on the Time Value of Money – TVM – see parts 1 and 2 .) Let’s say, for sake of argument, that our total car insurance...

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