## Goal Seek example

To calculate annual interest (I), create a table with the values for the capital (C), number of years (n), and interest rate (i). The formula is I = C*n*i.

Let us assume that the interest rate i of 7.5% and the number of years n (1) will remain constant. However, you want to know how much the investment capital C would have to be modified in order to attain a particular return I. For this example, calculate how much capital C would be required if you want an annual return of $15,000.

Enter each of the values for Capital C (an arbitrary value like $100,000), number of years n (1), and interest rate i (7.5%) in one cell each. Enter the formula to calculate the interest I in another cell. Instead of C, n, and i use the reference to the cell with the corresponding value. In our example, these are B1, B2, and B3.

- Place the cursor in the formula cell (the cell containing the interest I), and choose
**Tools > Goal Seek**.
- On the Goal Seek dialog, the correct cell is already entered in the
*Formula cell* field.
- Place the cursor in the
*Variable cell* field. In the sheet, click in the cell that contains the value to be changed, in this example it is the cell with the capital value C.
- Enter the desired result of the formula in the
*Target value* field. In this example, the value is 15000. The figure below shows the cells and fields.
*Example setup for goal seek*

- Click
**OK**. A dialog appears informing you that the Goal Seek was successful. Click **Yes** to enter the result in the cell with the variable value. The result is shown below.
*Result of goal seek operation*