What-if evaluation

Method of viewing various situations in a formula. For example, in Microsoft Excel, a user has the ability of performing a what-if evaluation by placing different values into a cell and comparing the results. As seen in the below examples, using a spreadsheet program, a user could manipulate the interest rate and determine what a monthly payment is.

Example One

Mortgage amount:$100,000
Years:30
Interest rate:12.000%
Monthly Payment:$1,028.61

Example Two

Mortgage amount:$100,000
Years:30
Interest rate:8.000%
Monthly Payment:$733.76

The excel formula to figure out this mortgage monthly payment would be =-PMT(B3/12,B2*12,B1) assuming that the values were in the B column.

Also see: Formula, If statement