![]() ![]() Student Loan is a scheme formed to help students to manage their finances during before, during and after the studies (Visit Study link to know more about it ). ![]() Last Updated: 12 November 2018 Student Loan All Rights Reserved.How to calculate student loan repayments? Link the final result to the other variable cells to drive the model changes. You can use Goal Seek with complex financial models as well as simple problems. You can press Cancel to not overwrite the results. ![]() Pressing OK will transfer the correct solution to the cells and the corresponding amount to borrow will be £11,774. This simple example will be solved very quickly and a confirmation dialog box will be displayed. Press OK to perform an iterative technique to try and find the specified goal.ĭifferent values will be tried repeatedly for the value in cell "C2" until the value in cell "C5" is £260.00. The "By changing cell" is the cell containing the value that you want to change in order to change the formula (in the "Set cell"). ![]() The "To value" is the value that you want to find a solution for. The "Set cell" is the cell that contains the formula. the cell containing the formula) and press (Tools > Goal Seek). In this case we could change the "Amount to Borrow" to say £11,000 and the "Monthly Repayment" would change automatically to £242.92. Lets suppose though that we had not decided on the exact amount to borrow or even the number of years over which we wanted to pay off the loan. Given the values above we can see that the monthly repayment would be £220.83. We can use our original formula and let the Goal Seek iteration process perform the trial and error for us.Ĭreate the following table and the following named ranges:Ī formula is entered into cell "C5" that will calculate the monthly repayment based on the other 3 values. You can use the Goal Seek to perform a "what if" analysis. We could change the formula to calculate the "Amount to Borrow" but this will be time consuming. We could either do this using trial and error entering different borrow amounts until we are close although this approach is not very practical. There are three ways you could go about this: What if we wanted to know how much we could borrow assuming a given monthly repayment of £260.00. If we borrow £10,000 with an interest rate of 6.0% per annum and the loan has to be repaid over 4 years we can use a simple formula to calculate the monthly repayment. ![]()
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