Goal Seek
It determines the value that you need to enter in a single input cell to produce the result that you want in a dependent (formula) cell. The following example shows you how single-cell goal-seeking works.
The figure above is showing an investment of Rs 1,200 per month @9.5% rate of interest for 5 years can yield a future value of Rs 91,706.70.
Now the problem with the investor is to get Rs 150000 after the 5 years span. Now he/she wants to know how much should be invested to get that much of an amount. This can be solved through the Goal Seek option of the excel what-if-analysis tool. Following are the steps to be followed:
- Place your cursor on cell B4. Choose Data -> Data Tools -> What-If Analysis -> Goal Seek. Excel displays the Goal Seek dialog box, shown in the Figure below.
Set cell B4: the cell you where to want to set the value. Set value 150000 To value field. Changing cell field should contain the address of the cell you want to change [B1]; i.e, the monthly premium.
2. The following information box will appear.
Click OK to accept the result or Click Cancel to restore your worksheet to the form that it had before you chose the Goal Seek command.
