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