TVM versus Internal Rate of Return (IRR)


 
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TVM versus Internal Rate of Return (IRR)
Bob
I seem to get different return or interest rates when using TVM vs and IRR scenario. The scenario is putting $250 into a fund for 36 months for a total investment of $9,000. The final return is $9,423. When I use the IRR to calculate the return I get of 0.26%. When I use a TVM calculation and solve for the interest rate/year, I get a return of 3.13%. Why is this and what am I doing right or wrong?
 

 























 


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