Working with Formulas and Functions

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1 Microsoft Excel Illustrated Introductory Working with Formulas and Functions

2 Objectives Create a formula with several operators Use names in a formula Generate multiple totals with AutoSum Use dates in calculations 2

3 Objectives Build a conditional formula with the IF function Use statistical ti ti functions Calculate payments with the PMT function Display and print formula contents 3

4 Creating a Formula with Several Operators Formulas can contain a combination of cell references (B2), operators (*), and values (2) Formulas can contain functions Formulas can perform several calculations Excel performs calculations in order of precedence 4

5 Creating a Formula with Several Operators (cont.) Calculated result from a formula Sample formulas using parentheses and several operators 5

6 Creating a Formula with Several Operators (cont.) Using Paste Special to paste formulas and values and to perform calculations Click the cells containing the formula or value, then click the copy button Right-click the cell where you want the result Click Paste Special in the pop-up menu 6

7 Using Names in a Formula Assigning names to cells and ranges can reduce errors and make the worksheet easier to understand Names used in formulas become absolute cell references by default Names can use uppercase or lowercase letters as well as digits After a cell or range is named, you can use the name on any sheet The name moves with the cell or range 7

8 Using Names in a Formula (cont.) Cell named Gross_with_Raise Name box Formulas with cell names Cell named Net_with_Raise 8

9 Using Names in a Formula (cont.) Producing a list of names Verify the names you have in a workbook and the cells they reference Select a blank cell with other blank cells beneath it, then point to Name on the Insert menu, then click Paste Click Paste List in the Paste List dialog box 9

10 Generating eat Multiple utpe Totals otas with AutoSum Use the AutoSum feature to total multiple ranges If you include blank cells to the right or the bottom of the selected range, AutoSum will generate several totals and enter the results in the blank cells 10

11 Generating eat Multiple utpe Totals otas with AutoSum (cont.) Multiple totals created using AutoSum 11

12 Generating eat Multiple utpe Totals otas with AutoSum (cont.) Quick calculations with AutoCalculate To view a total without entering a formula, select the range you want to sum The answer appears in the status bar next to SUM= Perform other calculations by right- clicking the AutoCalculate area in the status bar 12

13 Using Dates in Calculations l When you enter an Excel date format, Excel converts it to a serial number so it can be used in calculations A date s serial number is the number of days it is from January 1, 1900 The serial number 1 is assigned to January 1,

14 Using Dates in Calculations at (cont.) Formula is the invoice date +30 Formula result is automatically calculated as a date 14

15 Using Dates in Calculations at (cont.) Custom number and date formats When you use numbers and dates in worksheets or calculations, you can use built-in in Excel formats or create your own To create or apply number formats, click Cells on the format menu, then click the Number tab 15

16 Building a Conditional o Formula with the IF Function Build a conditional formula with the IF function A conditional formula is one that makes calculations based on stated conditions A condition that can be answered with a true or false response is called a logical test The IF function has three parts: a condition or logical test, an action if the condition or logical test is true, and an action if the condition or logical test is false Use comparison operators in IF statements 16

17 Building a Conditional Formula with the IF Function (cont.) Logical test Action taken if true Action taken if false 17

18 Building a Conditional Formula with the IF Function (cont.) Comparison operators 18

19 Building a Conditional Formula with the IF Function (cont.) Correcting circular references A cell with a circular reference contains a formula that refers to its own cell location If you accidentally enter a formula with a circular reference, a warning box alerts you to the problem 19

20 Using Statistical ti ti Functions Some functions calculate statistics such as averages, minimum values, and maximum values Commonly used statistical functions 20

21 Using Statistical Functions (cont.) AutoSum list arrow Statistical functions used to calculate values 21

22 Calculating at Payments with the PMT Function PMT is a financial function that calculates the periodic payment amount for money borrowed Parts of the PMT function are: PMT(rate,nper,pv,fv,type) PMT(0.085/12,60,15000) = $ Interest rate Number of payments Loan value Monthly payment 22

23 Calculating at Payments with the PMT Function (cont.) Annual interest rate divided by 12 months Loan term Loan amount Monthly payment 23

24 Calculating at Payments with the PMT Function (cont.) Calculating future value with the FV function Use the FV (Future Value) function to determine the amount of money a given monthly investment will amount to, at a given interest rate after a number of payment periods Syntax: FV(rate,nper,pmt,pv,type) 24

25 Displaying and Printing Formula Contents Usually formula calculations are displayed in the worksheet area and formula contents for the active cell in the formula bar Excel can display formulas directly in the worksheet 25

26 Displaying and Printing Formula Contents (cont.) Preview of formulas 26

27 Summary Use Excel to create formulas with several operators Use names in formulas Use dates in calculations Build conditional formulas using IF function Use AutoSum list arrow to insert statistical functions 27

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