Microsoft Office Tutorials and References
In Depth Information
Figure 2-9: This worksheet presents a simple demonstration of goal seeking.
Imagine that you're in the market for a new home, and you know that you can afford \$1,800 per month in mort-
gage payments. You also know that a lender can issue a fixed-rate mortgage loan for 6.5 percent, based on an 80
percent loan-to-value (a 20 percent down payment). The question is, “What is the maximum purchase price you
can handle?” In other words, what value in cell C4 causes the formula in cell C11 to result in \$1,800? You can
plug values into cell C4 until C11 displays \$1,800. Or, you can let Excel determine the answer.
To answer this question, choose Data Data Tools What-If Analysis Goal Seek. Excel displays the Goal Seek
dialog box, as shown in Figure 2-10. Completing this dialog box resembles forming the following sentence: Set
cell C11 to 1800 by changing cell C4. Enter this information in the dialog box by either typing the cell referen-
ces or by pointing with the mouse. Click OK to begin the goal seeking process.
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