Data Tables in Excel tutorial
In my last Excel Tutorial, I covered using SUMIFS and SUMPRODUCT.
Data Tables is also an advanced topic in Microsoft Excel that falls under the category of What-If Analysis. What-If or Sensitivity Analysis is carried out to study the variation of the output to changes in the input variable.
Consider a case of compound interest, where you invest a certain amount of money in a bank deposit and the amount is compounded every year.
Formula for calculating compound interest:
A = P * (1 + r/n) ^ nt
Where:
- P = principal amount (initial investment)
- r = annual interest rate (as a decimal)
- n = number of times the interest is compounded per year
- t = number of years
- A = amount after time t
Now, if suppose we want to see what the final amount will be at different interests rates, we can quickly use a data table for the same.
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