Excel’s Aim Seek function enables you to alter the data utilized in a formula in order to discover out what the final results will be.
The distinct benefits can then be compared to find out which one particular best suits your requirements.
Instance Utilizing Excel’s Goal Seek feature:
For help with this example, see the image above.
This instance 1st uses the PMT function to calculate the month-to-month payments for a loan.
It then makes use of Purpose Seek to lower the monthly payment by altering the loan period.
Enter the following information into the cells indicated:
Cell – Information
D1 – Loan Repayment
D2 – Price:
D3 – # of Payments:
D4 – Principal:
D5 – Payment:
E2 – 6%
E3 – 60
E4 – $ 225,000
Click on cell E5 and variety the following formula: = pmt ( e2 / 12 D3 gold , e3 , -e4 )
and press the ENTER crucial on the keyboard The worth $ four,349.88 must appear in cell E5. This is the existing month-to-month payment for the loan.
Altering the month-to-month payment making use of Goal Seek
Click on the Information tab.Choose What-If Analysis from the ribbon to open the drop down list.Click on Purpose Seek… in the list to bring up the Aim Seek dialog box. In the dialog box, click on the Set cell: line.Click on cell E5 in the spreadsheet given that we are interested in altering the month-to-month payments for this loan.In the dialog box, click on the T0 worth: line.Variety 3000 considering that we would like to lower the monthly payment to $ 3000.00.In the dialog box, click on the By altering cell: line.Click on cell E3 in the spreadsheet D3 gold given that we want to modify the monthly payment by altering the total number of payments to be made.Click OK.At this point, Aim Seek should start browsing for a remedy. If it finds 1, the Aim Seek dialog box will inform you that a solution has been identified.In this case, the solution is to change the number of payments in cell E3 to 95.25.To accept this solution, click OK in the Goal Seek dialog box and Purpose Seek will alter the data in cell E3.To uncover a diverse remedy, click Cancel in the Purpose Seek dialog box. Goal Seek returns the value in cell E3 to 60. You are now ready to run Goal Seek again.Related Tutorials
Calculating Loan Payments Employing Excel’s PMT Function
Calculating Future Value Making use of Excel’s PMT Function D3 gold