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Exhibit 9.19 Goal seek for term of PMT function
Exhibit 9.20 shows the results of the Goal Seek. The term that will lead to a loan
payment of \$5000 per month is 56.47907573 months, or approximately 56. The
solution is found in a fraction of a second; thus, you could perform many what-if
scenarios with little effort and in a minimal amount of time. Now, let us move to
the next example to see how we might run into problems with Goal Seek in more
complex situations.
9.5.2 Example 2—Goal Seek Applied to the CUMIPMT Cell
Suppose that Padcha, after some consideration, has decided that she would like
the sum of two years of cumulative interest to be exactly \$25,000: this is her new
goal. As before, she has decided on the level of investment she would like to make,
\$240,000, and the interest rate that the yacht broker will offer on ﬁnancing the pur-
chase is 7%. Thus, the variable that is available to achieve her goal is the term of
the loan. This appears to be an application of the Goal Seek tool quite similar to
Example 1. As before, the tool seeks to obtain a goal for a calculated value, by
manipulating a single input. Note that the calculated value is much more complex
than before (CUMIPMT), but why should that make a difference? In fact, this more
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