Normally, I expect to update My Prosper Internal Rate or Return twice a month: last day of the month for account value and the day I get the monthly statement.  Since posting My Prosper IRR yesterday, I have gotten my monthly statement; hence, there will be 3 updates this month (yesterday, today, and the last day of the month).  I received $25.40 in interest last month (note received as opposed to accrued).

That changes my December cash flow to ($274.60) — the ($300) I deposited and $25.40 in interest.

Here are teh adjusted cash flows…

Month	Interest Earned	Monies Added	Cash flow
7/06	$0.00	($200.00)	($200.00)
8/06	$1.92	$0.00	$1.92
9/06	$2.33	($200.00)	($197.67)
10/06	$2.73	($1,231.17)	($1,228.44)
11/06	$13.65	($1,430.43)	($1,416.78)
12/06	$25.40	($300.00)	($274.60)
1/07	$3,441.44	$0.00	$3441.44

 

My IRR jumped from 1.11% to 1.41%.  While I like to see it going up, what I am really interested in seeing is how it performs with late payments.  To be clear, I am not asking for a late borrower, but I expect to have one eventually.

I welcome comments in this area, I am just starting to wrap my head around this problem.

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Categories:

Prosper.com, Statistics, Strategy

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