I need help with PMT function and goal seeking

Hi,

I received this problem for a class I am in and I am completely lost, I was wondering if anyone knew how to solve it.

The boss is thinking about renovating the restrooms in the current store. He’s decided that he can afford up to $400 per month over 2 years for this project. Our bank said that they want 4.5% annual interest on the loan. The boss is wondering how much he can borrow given those limitations.
Create a new worksheet tab for this, please.
Setup the following cells as described:
• A3 is a label: Max Renovation Cost
• A5 is a label: Interest Rate
• A6 is a label: Loan Term
• A7 is a label: Monthly Payment
• B5 is a value: 4.5%
• B6 is a value:24

Now, use your mighty Excel prowess to figure out the maximum possible loan value, which should be stored in cell B3

I know you have to do PMT function first then goal function but I'm not quite sure how to solve it. Can anyone help?

Thanks

Hi, Welcome to the forum. You are right. You have to do pmt and then goal seek. Enter the PMT formula in B7 cell. Then use the goal seek function --> Set cell: B7, Set value: 400, By changing cell: B3

Regards,
Sindhu

I'm having one problem with my formula, I can't figure out the third part, I have this so far:

is the PMT formula =PMT(B5/12,B6,?)

What is the question mark suppose to be?

The PMT formula should be =PMT(B5/12,B6,B3)

too make sure I did it correctly, should my answer be 9,164.26

If so then thank you so much, you are my hero lol

Ya that should be your answer