When Using Goal Seek, You Can Specify the Outcome You

question 59

Multiple Choice

When using Goal Seek, you can specify the outcome you want and which input value you want to vary, and Excel ____.

• A) gives you a set of code to use in a database program
• B) automatically calculates the solution
• C) prompts you with a dialog box
• D) none of the above

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Definitions:

EAR

Stands for Effective Annual Rate, which is the real return on an investment, accounting for the effect of compounding interest over a period.

Compounded Semi-Annually

Concerns the process where the interest earned on an investment is added to the principal twice a year, allowing the interest to earn interest.

Rate of Return

Indicates the percentage of profit or loss on an investment over a specific time period, expressing the gain or loss in comparison to the investment's cost.

Initial Investment

The amount of money used to start a project, purchase an asset, or invest in a financial instrument.