Hi, I have a question on these types of formulas. If a couple sets up a
savings of $183 per month, for 18 yeasr at 6.5 % interest. Which areas
should be absolute? Their goal is $75,000


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"JudySonger" wrote:
If a couple sets up a savings of $183 per month, for 18 yeasr
at 6.5 % interest. Which areas should be absolute? Their goal
is $75,000

Not sure what you mean by "absolutes", but ....

You can compute the approximate future value of that annuity
as follows:

=FV(6.5%/12, 18*12, -183)

But you will find that falls short of the goal by $274. The
couple would do better to contribute $184 per month. You
can compute that as follows:

=PMT(6.5%/12, 18*12,, -75000)

as when the cell referance doesn't change when you copy and paste it to
another cell. You do this by placing a $ in the referance. B9 in
asolute form would be B$9$. I'm just not sure where to do that on this
particular formula.


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"JudySonger" wrote:
as when the cell referance doesn't change when you copy
and paste it to another cell.

Oh. The correct term is "absolute [cell] reference", in contrast
to "relative [cell] reference".

You do this by placing a $ in the referance. B9 in asolute
form would be B$9$. I'm just not sure where to do that
on this particular formula.

There are no "absolutes" (answer) :-). It is impossible to
say without knowing your spreadsheet design and objectives.
As you said, you use absolute references (one of 3 forms)
wherever you do not want the cell reference to change when
you copy-and-paste.

The following is a practical example that might actually fit
with what your are trying to do (wild-ass guess). Suppose:

A1: couple's goal (75000)
A2: couple's time frame in years (18)

You can build a table that shows the required monthly
investment, given varying assumptions about average annual
rate of return (3%, 3.5%, etc).

A3: average rate of return (3%)
B3: required investment: =PMT(A3/12, 12*$A$2,, -$A$1)
A4: next average return rate (3.5%): =A3+0.5%
B4: required investment: copy B3

You can copy A4:B4 down for as many rates that you want
to consider. Note that A3 is a relative reference (different
rate of return), whereas $A$1 and $A$2 are absolute
references (same future goal and time frame).

HTH.

Thanks I'll give those a try


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