The real power in Excel comes in its ability to perform multiple mathematical calculations for you. One of the tools in Excel that you can use to perform these calculations is a Data tool called What-If Analysis. What-If analysis allows you to see the effect that different values have in formulas. Have you ever thought, “What interest rate do I need to qualify for to have a car payment of $400 on the car I want?” This question can be answered using What-If Analysis.
In this lesson, you will learn how to use a What-If Analysis tool called Goal Seek.
In many worksheets, there may be some cells whose values are unknown, or you may just want to change certain cells to see what the outcome is. What-if analysis is perfect for these situations. It allows you to experiment and answer questions with your data, even when the data is incomplete.
Goal Seek is a type of what-if analysis that is useful if you know the desired result, but need to find the input value that will give you that result. For example, suppose you need a loan to buy a new car. You already know that you want a loan amount of $20,000, a 60-month term (the length of time it takes to pay off the loan), and a payment of no more than $400 a month. However, you’re not sure yet what the interest rate is going to be.
Watch the video to learn about using what-if analysis.
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