Goalseek gives incorrect results

[dindigul]

Hello
Using =PMT formula, I input B1=pmt(14.5%/12,60,A1) and in GoalSeek, I set
cell B1 to 5000 by changing cell A1 and I get 212,510.21 as the result
whereas simply seen 5000 in one year would be 60K and in 5 years it would be
300K. For small values it provides proper results but not for this one. What
wrong am I doing?
Thanks

 

[JoeU2004]

Using =PMT formula, I input B1=pmt(14.5%/12,60,A1) and
in GoalSeek, I set cell B1 to 5000 by changing cell A1
and I get 212,510.21

That is the correct result, assuming either you are misrepresenting the
signs of some things.

When A1 is 212,510.21, =PMT(14.5%/12,60,-A1) does indeed return about
5000.00 formatted to 2 decimal places. Note that I used -A1, not A1.

Alteratively, with PMT(...,A1), A1 should be -212,510.21; or if A1 is
212,510.21, PMT() should result in -5000.

whereas simply seen 5000 in one year would be 60K and
in 5 years it would be 300K.

Off-hand, I don't know that means. But I confess that I am not giving it
much thought since Goal Seek does indeed produce the correct result.

What wrong am I doing?

I'm biting my tongue

Seriously, if you can explain what you mean by the "whereas" statement
above, perhaps we can help you understand the Goal Seek result and/or
properly structure the Goal Seek problem to meet your expectations.

PS: You do not need Goal Seek for the problem as I understand it. Simply
use:

=PV(14.5%/12,60,-B1)

where B1 is 5000.


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