I need the instruction in yellow on cell E3. The table to the left was self made

Question

I need the instruction in yellow on cell E3. The table to the left was self made and does not necessarily needs to be part of the IFERROR formula.

You have $400,000 in an interest earning investment. Assume you are planning on withdrawing a fixed percent of your initial investment each year to live on. You wish to know how long your money will last Your investment could earn between 3 to 10 percent each year and you could withdraw 4 to 10 percent each year (whole % only). For example, you might withdraw 4% of your investment each year under the different earning percentages, i.e. how many years would it last if it was earning 3% annually, 4% annually, etc. What if you withdrew 5% a year and the investment earned 3% annually, 4% annually, etc. Use the Excel IFERROR function (not the VBA one) to indicate that you would never run out of money if the annual growth rate exceeds the withdrawal rate. Use the phrase "MONEY_FOREVER" for that happy state. Analyze this in a table. Finally, comment on the worksheet what this table tells you.

Explanation / Answer

The Formula that can be used in E3 will be like one below :

=IFERROR(IF(C3>B3,B3/0),"MONEY FOREVER")

Explanation : The IFERROR function in excel if of the format IFERROR(value,value_if_error_occurs)

Where value = formula or expression that we have to check

value_if_error_occurs = the message that will be printed if error occurs.

For the above Scenario

IFERROR formula should display the message "MONEY FOREVER" when ever the growth rate is greater than the withdrawl rate. To achieve this we checked if Growth rate > Withdrawl Rate, then we devided the Growth Rate by 0 which will cause an error to occur and then our message will be displayed. In case Growth Rate < Withdrawl Rate, then the Growth Rate division by 0 will never take place and the message will not be displayed.

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