hard20 pts · first answer countsexcelcalculationfinancial-modelling

An intended circular formula

In a cash model, interest depends on the average cash balance, and the balance depends on the interest. Excel warns about a circular reference. How can a modeller let Excel solve it?

A.Use F9 repeatedly until the warning stopsB.Wrap the interest formula in IFERROR to hide the loopC.Turn on iterative calculation with a set limitD.Move the interest formula to another workbook

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An intended circular formula

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