Using Other Function

LESSON 3

Excel has a lot of built-in functions that

you can explore and use. One of the more
important sets of functions is the financial
functions. This helps users make decisions
regarding borrowing and lending money. It
normally deals with interest, rate and time.

Using Financial Functions (FV and PMT)

RATE-

this function will return the interest

rate per period of an annuity. Rate is usually
calculated by iteration and can have zero or
more solutions. Payment is calculated
monthly so annuity means that rate would
normally be divided by 12.

NPER-

this function is the total number of

payment periods in a year. If you would be
paying your account in terms which is often
expressed in years, multiply the years by 12
since we have twelve (12) months in a year.

 PMT-

this function is the payment made each

period; thus it cannot change over the life of
an annuity. Typically, PMT contains principal
and interest but no other fees or taxes. If
PMT is omitted, you should include the PV
payment.

PV-

this function will give you the present

value or the lump-sum amount that a series
of payment is worth right now. If PV is
omitted, it is assumed to be zero (0), and
you must include the PMT argument.

Using PMT Function

The PMT function allows you to compute the periodic
payment amount for a loan on a car, house, or any other item.
For example, suppose you loan money to a bank amounting
to P100,000.00. And you have to pay this amount n 20 years
with an interest rate of 3%. The monthly payment will be
P554.60.
The PMT requires you to enter the interest rate, length of
loan (number or period), and PV (Present Value, the amount
you are borrowing or lending). Thus, the syntax of the formula
is:
= PMT (rate, nper, pv)
Rate which you will divide into 12 months, the NPER, which
is the total number of payment for the loan which will be
multiplied by 12 months, and PV as the present value.

Using FV Function
This function returns the feature value of the investment at
the end of the term calculated interest rate. Future value is used
to compute for the future value of an investment based on
recurring periodic payments at a constant rate of interest.
For example, suppose you save P200.00 a month for three
years with an interest rate of 5% you will have P7,750.67 at the
end of the period.
To use the Insert Function button, follow these steps:
1. Click the Formulas tab and click Financial from the Function
Library.
2. Click the drop-down arrow list and choose the FV function.
3. Complete the needed arguments.
4. Click OK button.

To compute for the Rate:

= Rate /12 (there are 12 months in a year)
To compute for NPER
= Multiply the No. of Years *12 (no of months in a
year)
To compute for PMT
Type the cell address (this is the amount you
intend to deposit every month)

Text and Data Functions

You can also modify and format text using
formulas. Let us assume that you want to convert
text from uppercase to lowercase or vice-versa to
make it more readable. You can use the Proper,
Upper, Lower and Substitute functions.

Proper function - is used to change the case of the

selected text to all proper case letters. You can use
this function if you want to copy or import data in
your spreadsheet.

Upper function- will change all selected text into

capital letter or upper case letter.

Lower function- will convert all selected text into

lower case letters. Sometimes you can import data
or copy it in Excel that some of the words have
incorrect capitalization.

Substitute function- will replace a set of characters

with another character or text.

Logical functions- are powerful worksheet functions

that enable you to add decision making and logical
preference for your worksheet.

IF function- returns one value if a condition you

specify evaluates to TRUE, and another value if that
condition evaluates to FALSE.
The IF function has the following arguments:
Logical_test- it is a value or expression that can be
evaluated to true or false.
Value_if_true- this is a value that is returned if logical
test is true.
Value_if_false- this is the value that is returned if
logical_test is false.
Pg. 104

AND function- this function returns TRUE if all its

arguments evaluate to TRUE or returns FALSE if one or
more arguments evaluate to FALSE.
OR function- this function returns a TRUE value if any
argument is TRUE or returns a FALSE value if the
arguments are FALSE. Similar to AND function, OR
function can also accommodate up to maximum of 255
conditions.
NOT function- this function will return a TRUE value if
the argument is FALSE, and will return FALSE value if
the argument is TRUE.
Pg. 106

More Advanced Functions

IFERROR function- this function will test if the value expression
is an error or the value of the expression is not an error. This
function is used to trap and handle errors in formulas. The
IFERROR function protects you from getting error messages
generated by faulty formula such as #N/A, # VALUE!, #REF!,
#DIVo!, #NUM!, or #NULL!.
SUMIF function- this function is used if you want to add up the
values in a given range that meets a certain criterion.
Syntax is =SUMIF (RANGE, CRITERIA, [SUM RANGE]
The range and criteria arguments are required in this function.
Range is the range of cells that you want to evaluate based on
the criteria. Criteria can be in a form of a number, expression,
a cell reference, text, or a function that defines which cells
are to be added.
Pg. 107

SUMIFS function- this functions extends the

functionality of SUMIF() by adding up data that
meets multiple criteria.
COUNTIF function- this function is used to count
up the number of the cells within a range that
meet the specified criterion.
AVERAGEIF function- this function is used to get
the average of values in cells within a range that
meets the specific criteria.
AVERAGEIFS function- this function will return
the average of all cells tat meets multiple
criteria.
Pg. 108

VLOOKUP function- this function will search for specific

information which has been stored in a spreadsheet.
Lookup_value is the value that you want to look into the
first column of a table array.
Table_array is the table of data that the VLOOK will search
to look for the information you are seeking. The table array
should contain at least two columns of data wherein the first
data should countain the lookup-values.
Col_index_num is the number of the column in a table
array that contains the data to be returned.
Range_lookup is the logical value which indicates that you
want to find the exact or the approximate match to the
lookup_value.

HLOOKUP () Function- this function will look for the specific

information that is stored in the rows of a spreadsheet table. It
searches for a value in the top or an array of values, and then
returns a value in the same column from a row you specify in
the table or array.
Syntax is as follows:
Lookup_value this is the value that you want to look into
the first column of a table array.
Table_array this is the table of data that the VLOOK will
search to look for the information you are seeking. The
table_array should contain at least two columns data wherein
the first data should contain the lookup-values.
Row_Index_num- This is the number of the column in a
table array that contains the data to be returned.
Range_Lookup- This is the logical value which indicates that
you wanted to find the exact or the approximate match to the
lookup_value.