Problem: I am considering buying a car. I used "Calculate a Loan Payment" to calculate a loan payment. Now I want to do some what-if scenarios in order to see various options of increasing or decreasing the term or price. How can Excel help me with this?
Strategy: You follow the same setup described in "Calculate a Loan Payment." Then you copy cells B1:B5 and plug in different numbers for the price and/or term.
- Copy so that you can play what-if analyses.
This is an area where Excel shines. After you have entered the formulas for one loan model, you can easily copy and create many more loan models.