Explanation

Goal Seek can be useful in financial planning.

Suppose you know:

  • Loan Amount
  • Interest Rate
  • Loan Period

but want to determine the loan period required to keep EMI within a target amount.

Example

Input

Value

Loan Amount

₹500,000

Annual Interest

10%

Years

5

Monthly EMI:

=PMT(B3/12,B4*12,-B2)

Suppose the desired EMI is:

₹9,000

Goal Seek can change the loan period until the EMI reaches the target.

Important

Loan periods may need to be interpreted in complete months rather than arbitrary decimal years.

Practice

Use Goal Seek to determine a suitable loan period for:

₹10,000 maximum monthly EMI.

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