Problem with Goal Seek

  • Thread starter Thread starter C.M. Marsh
  • Start date Start date
C

C.M. Marsh

I have tried the example problem provided by Microsoft
(Excel's help) and get nothing but errors. I have tried
for about 2 hours, everything I know (been using Excel for
many years). I am using Office XP Pro and Windows XP
Pro. This is a very simple example and I can't get see
what I'm doing wrong (if anything)

loan amt 100000
term, months 180
interest rate --should solve to 7.02% (I entered seed
values such as .065 and formatted as %; also left blank,
etc.)

payment ----cell pmt(b3/12,b2,b1)...goal is to pay no
more than $900. Interest should come up as 7.02%

Excel keeps saying it might not have found a solution -
then comes up with ridiculous interest rates. Thanks.
 
The rate you get is the rate per period, in your case per month. Seeding
better be done with monthly rates also.
 
C.M.

If you have a positive value in the loan amount then the
payment must be a negative value. Microsoft's example
is correct, however a $900 payment for you is -900 from
your cash flows.

IE
You get $100,000 (your +$100,000)
You pay $900 (your -$900)

goal seek to get -$900

Dan E
 
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