## Are you sure?

This action might not be possible to undo. Are you sure you want to continue?

Creating and Using Lists

What is a list?

y A list is essentially an organized collection of information. y More specifically, a list consists of a row of headers (descriptive text)

followed by additional rows of data, which can be values or text. y You can also think of a list as a database table that is stored in a worksheet. y People often refer to the columns in a list as fields and to the rows as records.

List Example .

For example. format the entire column with the desired date format. . For list operations. don t mix dates and text in a single column.Designing a List y The following are some guidelines to keep in mind when creating lists: Insert descriptive labels (one for each column) in the first row of the list. Excel determines the list boundaries automatically. For example. and an empty row signals the end of the list. You can preformat entire columns to ensure that the data has the same format. Each column should contain the same type of information. Don t use any empty rows within the list. This is the header row. if a column contains dates. Select the upper-left data cell and choose Window Freeze Panes to make sure that the headings are visible when the list is scrolled.

Excel determines the extent of your list and displays a dialog box showing each field in the list. . move the cell pointer anywhere within the list and choose Data Form. using all standard data entry techniques By importing it or copying it from another file By using a dialog box y There s really nothing special about entering data into a list.Entering Data into a List y Entering data into a list can be done in three ways: Manually. Excel accommodates you. To bring up a data entry dialog box. y If you prefer to use a dialog box for your data entry. You just navigate through the worksheet and enter the data into the appropriate cells.

) .Entering Data into a List (Contd.

Use Tab to move among the fields. Then you can enter the new information into the appropriate fields. . y When you click New (or Close). You also can press Enter. which is equivalent to clicking on the New button. the data that you entered is appended to the bottom of the list.Entering data with the Data Form dialog box y When the Data Form dialog box appears. click the New button to clear the fields. the first record in the list is displayed. y To enter a new record.

. which are described as follows: Delete: Deletes the displayed record. delete records. You can edit existing data in the list. this button displays the previous record that matches the criterion. If you entered a criterion. y The dialog box contains a number of additional buttons. this button displays the next record that matches the criterion. Find Prev: Displays the previous record in the list. and display records that meet certain criteria. Criteria: Clears the fields and lets you enter a criterion upon which to search for records. Find Next: Displays the next record in the list. You must click this button before you click on the New button.Other uses for the Data Form dialog box y You can use the Data Form dialog box for more than just data entry. Restore: Restores any information that you edited. view data one record at a time. If you entered a criterion.

Filtering a List y Filtering a list is the process of hiding all rows in the list except those that meet some criteria that you specify. For example. displaying students who live in Peshawar only. y Excel provides two ways to filter a list: y AutoFilter for simple filtering criteria y Advance Filter for more-complex filtering .

Then choose Data Filter AutoFilter. . To move out of AutoFilter mode and remove the drop-down arrows from the field names. Excel analyzes your list and adds drop-down arrows to the field names in the header row. choose Data Filter AutoFilter again. start by moving the cell pointer anywhere within the y y y y y list. Select an item. the list is filtered by the item that you selected. After you filter the list. When you click the arrow in one of these drop down lists.Using autofiltering y To autofilter a list. In addition. In other words. This removes the check mark from the AutoFilter menu item and restores the list to its normal state. the list expands to show the unique items in that column. the drop-down arrow changes color to remind you that the list is filtered by a value in that column. the status bar displays a message that tells you how many rows qualified. and Excel hides all rows except those that include the selected item.

Autofiltering .

Creating Dynamic Lists with PivotTables .

.

That means you cannot easily exchange the data of rows and columns. y You can use an Excel tool to reorganize and redisplay your data dynamically. that lets you reorganize and filter your data on the fly. You can create a PivotTable. or dynamic worksheet. you must have your data collected in a list. . but the standard worksheet can t be changed from its original configuration easily. y To create a PivotTable.Creating Dynamic Lists with PivotTables y Excel worksheets let you gather and present important data.

. To create a PivotTable. you must have your data collected in a list in which every row represents a cell in the body of the finished PivotTable. and click PivotTable and PivotChart Report to launch the PivotTable and PivotChart Wizard.) y Consider the following data. you can click any cell in that list. Once you have created a list. open the Data menu.Creating Dynamic Lists with PivotTables (Contd.

Creating Dynamic Lists with PivotTables (Contd.) .

Creating Dynamic Lists with PivotTables (Contd.) y On this wizard page. Clicking Next accepts the default choices and moves you to the second wizard screen. you identify the data source for your PivotTable and whether you want to create a PivotTable by itself or a PivotTable and a PivotChart. .

select the cells that contain your data.Creating Dynamic Lists with PivotTables (Contd.) y On this screen. you verify that the wizard has correctly identified the cells with the data for your PivotTable. Once the proper cell range is listed in the Range box. . and then expand the dialog box to continue. If not. you can click the Collapse Dialog button in the Range box. click Next to move to the final wizard screen.

and adds a PivotTable. Because the data lists used to create PivotTables are usually quite long. creates a new worksheet in your workbook. the PivotTable toolbar. .) y This wizard screen asks whether you want to create your PivotTable in a new or an existing worksheet.Creating Dynamic Lists with PivotTables (Contd. and the Pivot Table Field List dialog box to that worksheet. it is often best to create the PivotTable in a new worksheet. Clicking Finish closes the wizard.

Creating Dynamic Lists with PivotTables (Contd.) .

to an area of the PivotTable. you drag the field head to the desired area on the PivotTable outline. After you drop a field head in the Drop Data Items Here box.) y To assign a field.Creating Dynamic Lists with PivotTables (Contd. . the PivotTable fills with data. For example. drag the Region field head to the Drop Column Fields Here box. and then drag the Sales field head to the Drop Data Items Here box to populate the body of the PivotTable with data. or column in a data list. you can drag the Sales Rep field head to the Drop Row Fields Here box.

Creating Dynamic Lists with PivotTables (Contd.)

**To format PivotTable data
**

y Select the cells in the PivotTable data area. y On the Format menu, click Cells. y Use the controls in the Format Cells dialog box to format the cells in

the PivotTable, and click OK.

**To apply a predefined format to a PivotTable
**

y If the PivotTable toolbar is hidden, right-click any toolbar and then,

from the shortcut menu that appears, click PivotTable. y Click any cell in the PivotTable. y On the PivotTable toolbar, click the Format Report button. y Click the desired AutoFormat.

To apply a predefined format to a PivotTable

if necessary. While the PivotTable Field List dialog box is open. click the down arrow of the field head used to filter the PivotTable. you click any cell in the PivotTable and then. you can drag any field name from the dialog box to the active PivotTable. you can edit it to control how your y y y y data is displayed. Clicking a field head s down arrow displays a list of values in the field. Clicking any of these values and then clicking OK limits the data shown in the PivotTable to data gathered on the selected weekday. and then click OK. . display the fields available for the PivotTable by clicking the Show Field List button on the PivotTable toolbar. but it does let you filter your PivotTable based on the contents of the field. To open a PivotTable for editing.Editing PivotTables y After you have created a PivotTable. To remove a filter from a PivotTable. click (All). Dragging a field name to the Drop Page Fields Here box doesn t change how the data in your PivotTable is arranged.

Functions and Formulas .

y Regardless of your bookkeeping needs. And if you should make an error. y Excel makes it easy to reference a number of cells at once.Purpose y One important task you can perform in Excel is to calculate totals for the values in a series of related cells. you can find the cause and correct it quickly. such as the maximum or minimum value in a group of cells. You can also use Excel to find out other information about the data you select. letting you define your calculations quickly. . Excel gives you the ability to find the information you want.

. it knows that the expression following it should be interpreted as a calculation and not text. you can create a formula. you can find the sum of the numbers in cells C2 and C3 using the formula =C2+C3. y To write an Excel formula. you begin the cell s contents with an equal sign when Excel sees it. After the equal sign.Creating Formulas to Calculate Values y Once you ve added your data to a worksheet and defined ranges to simplify data references. you can revise it by clicking the cell and then editing the formula in the formula bar. or an expression that performs calculations on your data. you type the formula. y After you have entered a formula into a cell. y For instance.

from which you can choose. you click Function on the Insert menu. or predefined formulas. y To create a new calculation. .Formulas Contd. with a list of functions. The Insert Function dialog box appears.

The process of examining a worksheet for errors in formulas is referred to as auditing. an Error button appears next to it. . y When a cell with an erroneous formula is the active cell.Finding and Correcting Errors in Calculations y Excel makes it easy to find the source of errors in your formulas by identifying the cells used in a given calculation and describing any errors that have occurred. The first way is to fill the cell holding the formula generating the error with an error code. y Excel identifies errors in several ways. You can click the button s down arrow to display a menu with options that provide information about the error and offer to help you fix it.

. The formula refers to a cell that doesn t exist (which can happen whenever cells are deleted). The formula attempts to divide by zero. The formula contains text that Excel doesn t recognize (such as an unknown named range). The formula has the wrong type of argument (such as text where a TRUE or FALSE value is required).Error Codes Error Code ##### #VALUE! #NAME? #REF! #DIV/0! Description The column isn t wide enough to display the value.

y Excel divides formulas into four groups: arithmetic. text.Entering and Editing Formulas y Entering a new formula into a worksheet appears to be a straightforward process: 1. 3. 2. Type the formula s operands and operators. Select the cell in which you want to enter the formula. comparison. . Type an equals sign (=) to tell Excel that you re entering a formula. and reference. 4. Press Enter to confirm the formula.

percentage (%).Using Arithmetic Formulas y Arithmetic formulas are by far the most common type of formula. They combine numbers. subtraction (-). and function results with mathematical operators to perform calculations. multiplication (*). division (/). exponentiation (^). y It consists of operators like addition (+). cell addresses. .

the formula returns the logical value FALSE (which is equivalent to 0) . y If the statement is true. cell contents. text strings. If the statement is false. or function results.Using Comparison Formulas y A comparison formula is a statement that compares two or more numbers. the result of the formula is given the logical value TRUE (which is equivalent to any nonzero value).

if you enter the formula = soft"&"ware" into a cell. y You also can use & to combine cells that contain text. For example. entering the formula =A1&" and " &A2 returns Ben and Jerry.Using Text Formulas y A text formula is a formula that returns text. . if A1 contains the text Ben and A2 contains Jerry. y One way to use text formulas is to concatenate text strings. text strings enclosed in quotation marks. and text function results. For example. Excel displays software. y Text formulas use the ampersand (&) operator to work with text cells.

.Using Reference Formulas y The reference operators combine two cell references or ranges to create a single joint reference.

Operator Precedence y 3 ^ (15/5) * 2 5 y 3 ^ ((15/5) * 2 5) y 3 ^ (15 / (5 * 2 5 )) .

Understanding Relative Reference Format y When you use a cell reference in a formula. y This means that if you copy this formula to cell A4. but the formula changes to =A2*2 because A2 is two rows above A4. This is called the relative reference format. . y For example. the relative reference is still Multiply the contents of the cell two rows above this one by 2. To Excel. suppose that you have the formula =A1*2 in cell A3. this formula says. and it s the default format for Excel. Multiply the contents of the cell two rows above this one by 2. Excel looks at the cell address relative to the location of the formula. y This way of handling copy operations will save you incredible amounts of time when you re building your worksheet models.

Excel interprets the formula =$A$1*2 as Multiply the contents of cell A1 by 2. The cell address is said to be anchored. y No matter where you copy or move this formula. y You tell the program that you want to use an absolute reference by placing dollar signs ($) before the row and column of the cell address. Excel uses the physical address of the cell. . the cell reference doesn t change.Understanding Absolute Reference Format y When you refer to a cell in a formula using the absolute reference format. y Talking about the old example.

y Enter the name you want to use for the formula in the Name text box. Name. enter the formula exactly as you would if you were entering it in a worksheet. y In the Refers To box.Naming Formulas y Follow these steps to name a formula: y Choose Insert. . y Click OK. Define Name to display the New Name dialog box.

including the following: Text Logical Information Lookup and reference Date and time Math and trigonometry Statistical Financial Database and table .Functions y Excel has various function categories.

here are a few rules and guidelines to follow: You can enter the function name in either uppercase or lowercase letters. SUM(B1:B15)) sums two columns of numbers and returns the average of the two sums .) You can use a function as an argument for another function. Always separate multiple arguments with commas. the function AVERAGE(SUM(A1:A10). Excel ignores the extra spaces. For example. Always enclose function arguments in parentheses. Excel always converts function names to uppercase. This is called nesting functions.Typing a Function into a Formula y Whether you use a function on its own or as part of a larger formula. (You might want to add a space after each comma to make the function more readable.

Using the IF() Function (The Simplest Case) y Let s start with the simplest version of the IF() function: y IF(logical_test. It s big! ) . y value_if_true: The value returned by the function if logical_test evaluates to TRUE. consider the following formula: =IF(A1 >= 1000. an expression that returns TRUE or FALSE (or their equivalent numeric values: 0 for FALSE and any other number for TRUE). y For example. value_if_true) y logical_test: A logical expression that is.

consider the following formula: =IF(A1 >= 1000. y For example. It s big! . value_if_false) y logical_test: A logical expression.IF() Function (Handling a FALSE Result) y IF(logical_test. value_if_true. It s not big! ) . y value_if_false: The value returned by the function if logical_test evaluates to FALSE. y value_if_true: The value returned by the function if logical_test evaluates to TRUE.

To make sure that Sales isn t zero. y For example. To avoid this error.IF() Function (Avoiding Division by Zero) y Excel displays the #DIV/0! error if a formula tries to divide a quantity by zero. you can use IF() to test the divisor and ensure that it s nonzero before performing your division. the basic equation for calculating gross margin is (Sales Expenses)/Sales. (Sales . use the following formula: y =IF(Sales <> 0. Sales are zero! ) .Expenses)/Sales.

Performing Multiple Logical Tests y Excel offers several techniques for performing two or more logical tests: nesting IF() functions. and the OR() function. the AND() function. .

For example. Big! ). you would use this version of the formula: =IF(A1 >= 1000. you want to run another test that checks to see if A1 > 10000. Not big ) What if you want to return a different string for values greater than. Big! .Nesting IF() Functions y When building models using IF(). Really big!! . if the condition A1 > 1000 proves to be true. say. if you want to return the description Small for a cell value less than 100. Not big ) For example. Big! . IF(A1 < 100. Small . consider the variation of our formula that outputs a description based on the value in cell A1: =IF(A1 >= 1000. it s common to come upon a second y y y y y fork in the road when evaluating either the value_if_true or value_if_false arguments. IF(A1 >= 10000. Not big )) . 10.000? In other words. You can handle this scenario by nesting a second IF() function inside the first as the value_if_true argument: =IF(A1 >= 1000.

but it s most often pressed into service as the logical condition in an IF() function.The AND() Function y It s often necessary to perform an action if and only if two conditions y y y y are true. In other words. No bonus ) . 1000 . IF() returns its value_if_false result. IF() returns its value_if_true result. You can use the AND() function anywhere you would use a logical formula. AND() returns FALSE. AND() returns TRUE. Here s an example: =IF(AND(B2 > 0. If one or more of the arguments return FALSE (or 0). if all the logical conditions in the AND() function are TRUE. The AND() result is calculated as follows: If all the arguments return TRUE (or any nonzero number). if one or more of the logical conditions in the AND() function are FALSE. C2 > 0).

1000 . If all of the arguments return FALSE (or 0). y Here s an example: =IF(OR(B2 > 0. you use OR() wherever a logical expression is called for.The OR() Function y The OR() result is calculated as follows: If one or more of the arguments return TRUE (or any nonzero number). most often within an IF() function. if all of the logical conditions in the OR() function are FALSE. OR() returns TRUE. C2 > 0). IF() returns its value_if_true result. OR() returns FALSE. IF() returns its value_if_false result. y This means that if one or more of the logical conditions in the OR() function are TRUE. y As with AND(). No bonus ) .

y In a formula that charges interest on overdue accounts. the interest percentage might depend on the number of days each invoice is overdue. the customer s discount might depend on the number of units purchased. y The usual way to handle these kinds of problems is to look up the appropriate value. Here are some examples: y In a formula that calculates an invoice total. .Working with Lookup Functions y In many worksheet formulas. the value of one argument often depends on the value of another.

y The most straightforward lookup table structure is one that consists of two columns (or two rows): Lookup column This column contains the values that you look up. . It then retrieves the corresponding value in the data column. In the dictionary example. this column would contain the words. this column would contain the definitions. Data column This column contains the data associated with each lookup value. y In most lookup operations. For example.Understanding Lookup Tables y The table more properly referred to as a lookup table is the key to performing lookup operations in Excel. if you were constructing a lookup table for a dictionary. you supply a value that the function locates in the designated lookup column.

formulas. value1[. value2 is returned (and so on). so CHOOSE() returns the second value in the list. The values can be numbers. or functions.]) Num: Determines which of the values in the list is returned. which enables you y y y y y to select a value from a list.The CHOOSE() Function y The simplest of the lookup functions is CHOOSE(). names. If num is 1. Air Mail . num must be an integer (or a formula or function that returns an integer) between 1 and 29.. if num is 2. CHOOSE() returns the nth item from the list. value2. consider the following formula: =CHOOSE(2. Courier ) The num argument is 2. value1 is returned. For example. references.. which is the string value Air Mail. Surface Mail . given an integer n. value2... Specifically. strings..: The list of up to 29 values from which CHOOSE selects the return value. Here s the function s syntax: CHOOSE(num. . value1.

of course. and so on). Only one set of data values is allowed per function. y Excel can use a wider variety of lookup values (negative or real numbers. to the worksheet s inherent size limitations). . and it can also accommodate multiple data sets that each can have any number of values (subject.Looking Up Values in Tables y CHOOSE() does have its drawbacks: The lookup values must be positive integers. strings. The maximum number of data values is 29. y Excel has two functions that meet these criteria: VLOOKUP() and HLOOKUP().

table_array: This is the table to use for the lookup. You can use a range reference or a name. string. or reference. You can enter a number. table_array. the second column is 2. the lookup column is 1. col_index_num) lookup_value: This is the value you want to find in the first column of table_array. (The V in VLOOKUP() stands for vertical. Here s the full syntax for VLOOKUP(): VLOOKUP(lookup_value.The VLOOKUP() Function y The VLOOKUP() function works by looking in the first column of a table for y y y y y y the value you specify. .) It then looks across the appropriate number of columns (which you specify) and returns whatever value it finds there. and so on). col_index_num: If VLOOKUP() finds a match. col_index_num is the column number in the table that contains the data you want returned (the first column that is.

The VLOOKUP() Function (Contd. . VLOOKUP() returns #VALUE!. If col_index_num is less than 1. it returns #N/A. if col_index_num is greater than the number of columns in table. VLOOKUP() returns #REF!.) If VLOOKUP() doesn t find a match in the lookup column.

VLOOKUP Example .

. the lookup row is 1. You can use a range reference or a name. row_index_num) lookup_value: This is the value you want to find in the first row of table_array. string.) If successful. this function then looks down the specified number of rows and returns the value it finds there. Here s the syntax for HLOOKUP(): HLOOKUP(lookup_value. row_index_num is the row number in the table that contains the data you want returned (the first row that is. You can enter a number. except that it y y y y y y searches for the lookup value in the first row of a table. (The H in HLOOKUP() stands for horizontal. row_index_num: If HLOOKUP() finds a match. table_array: This is the table to use for the lookup. or reference. and so on). the second row is 2.The HLOOKUP() Function y The HLOOKUP() function is similar to VLOOKUP(). table_array.

HLOOKUP Example .

Math & Statistical Functions .

0) gives 236. as explained here: num_digits >0 0 <0 Description Rounds number to num_digits decimal places Rounds number to the nearest integer Rounds number to num_digits to the left of the decimal point y =round(236. y =round(236.The ROUND() Function y The rounding function you ll use most often is ROUND(): y ROUND(number.12. y =round(236.1234. -2) gives 200.1234. .1234. 2) gives 236. num_digits) y number: The number you want to round y num_digits: An integer that specifies the number of digits you want number rounded to.

2) returns 16. ODD(58. as follows: EVEN() rounds to the next even number. EVEN(14. ODD() rounds to the next odd number.The EVEN() and ODD() Functions y The EVEN() and ODD() functions round a single numeric y y y y y argument: EVEN(number) ODD(number) number: The number you want to round Both functions round the value given by number away from 0. and EVEN( 23) returns 24. For example. .1) returns 59 and ODD( 6) returns 7. For example.

y You can use the TRUNC() function s second argument num_digits to specify the number of decimal places to leave on.42) returns 4.456. If you just want to lop off the decimal part. INT(6.75) returns 6.The INT() and TRUNC() Functions y The INT() and TRUNC() functions are similar in that you can use both to convert a value y y y y to its integer portion: INT(number) TRUNC(number[. you need to use TRUNC() instead. 2) returns 123. INT() returns the next number away from 0. and TRUNC(3.45.6) returns 3. INT( 3. these functions have two major differences that you should keep in mind: y For negative values. For example.456. However. as explained here: num_digits >0 0 <0 Tr Tr cates all Description t i its eci al laces cates all eci al laces (this is the efa lt) i its to the left of the eci al oi t i to zeroes Co verts y For example. For example. TRUNC(123. 2) returns 100. and TRUNC(123. . num_digits]) number: The number you want to round num_digits: An integer that specifies the number of digits you want number rounded to.

The values you want to add y For example. E2:E13) The MOD() Function y The MOD() function calculates the remainder (or modulus) that y y y y results after dividing one number into another. with remainder 4) . 24 10 = 2. 10) equals 4 (that is.. C2:C13. divisor) number: The dividend (that is.]) y number1. the number to be divided) divisor: The number by which you want to divide number For example. . number2. number2. Here s the syntax for this more-useful-than-you-think function: MOD(number.... the following formula returns the sum of the values in three separate ranges: y =SUM(A2:A13.The SUM() Function y Here s the syntax of the SUM() function: y SUM(number1[. MOD(24..

..Counting Items with the COUNT() Function y The simplest of thedescriptive statistics is the total number of values. expressions.... value2. One or more ranges. which is given by the COUNT() function: y COUNT(value1[..]) y value1. or literal values of which you want the count . function results.value2.

. y You calculate the median using the MEDIAN() function: y MEDIAN(number1[..number2.The AVERAGE() Function y The mean is what you probably think of when someone uses the term average.number2. and 50% fall above it... 50% of the values fall below the median. or list of values of which you want the mean The MEDIAN() Function y The median is the value in a data set that falls in the middle when all the values are sorted in numeric order.. it s the arithmetic mean of a set of numbers.. or list of values of which you want the median . A range. That is.. y In Excel.. number2...]) y number1.. That is. number2.]) y number1. you calculate the mean using the AVERAGE() function: y AVERAGE(number1[.. A range.

number2. You calculate the mode using the MODE() function: MODE(number1[. or list of values of which you want the mode .. but the mode will tell you which color was chosen the most. For example. y The mode is most useful when you re dealing with data that doesn t y y y y lend itself to being either added (necessary for calculating the mean) or sorted (necessary for calculating the median)...]) number1. The mean and median don t make sense with such a question..number2...The MODE() Function y The mode is the value in a data set that occurs most frequently. A range. you might be tabulating the result of a poll that included a question about the respondent s favorite color.

.]) number1.number2. or list of values of which you want the maximum To get the smallest value in a data set.. number2... A range. number2... A range. use the MAX() y y y y y function: MAX(number1[..... or list of values of which you want the minimum ..]) number1.The MAX() and MIN() Functions y If you want to know the largest value in a data set.number2.. use the MIN() function: MIN(number1[.

Calculating the Range y The simplest measure of variability is the range (also sometimes y y y y called the spread). . Excel doesn t have a function that calculates the range directly. here s a formula that calculates the range for the defects database: =MAX(D3:D22) . you calculate the range by subtracting the minimum from the maximum. the range is a useful measure of variation only for small sample sizes. Then. Instead. you first apply the MAX() and MIN() functions to the data set. which is defined as the difference between a data set s maximum and minimum values.MIN(D3:D22) Speaking generally. For example. when you have these extreme values.

.. number2.. You use the VAR() function if your data set represents only a sample from the entire population..number2. A range...]) VAR(number1[. . or list of values of which you want the variance You use the VARP() function if your data set represents the entire population....Calculating the Variance with the VAR() Function y Excel calculates the variance using the VARP() and VAR() y y y y functions: VARP(number1[.number2.]) number1.

number2..number2. . number2.]) number1.. but Excel offers a more direct route: STDEVP(number1[.Calculating the Standard Deviation with the STDEVP() and STDEV() Functions y You could calculate the standard deviation by taking the square y y y y root of the VAR() result.. you use the STDEV() function if your data set represents only a sample from the entire population....]) STDEV(number1[. or list of values of which you want the standard deviation You use the STDEVP() function if your data set represents the entire population. A range....

Some More Functions .

Use 0 (the default) for end-of-period payments. fv][. To return the periodic payment for a loan. use the PMT() function: PMT(rate. the following formula returns the monthly payment of a $10.The PMT Function y The PMT function returns the loan payment (principal plus interest) y y y y y y y y y per period. pv[. 10000) .5% per month) over 5 years (60 months): =PMT(0. pv: The loan principal. nper: The number of payments over the term of the loan. nper. 60. use 1 for beginning-of-period payments. For example. fv: The future value of the loan.000 loan with an annual interest rate of 6% (0. type: The type of payment. type]) rate: The fixed rate of interest over the term of the loan.005. assuming constant payment amounts and a fixed interest rate.

To calculate the principal and interest components of a loan payment. . This means. per. nper. type]) IPMT(rate. which means that the interest component is highest at the beginning of the loan and gradually decreases with each payment. pv: The loan principal. fv][. nper: The number of payments over the term of the loan. per. type]) rate: The fixed rate of interest over the term of the loan. pv[. nper. use the PPMT() and IPMT() functions.Calculating the Principal and Interest y Any loan payment has two components: principal repayment and interest y y y y y y y y y y charged. fv][. conversely. Use 0 (the default) for end-of-period payments. pv[. type: The type of payment. fv: The future value of the loan (the default is 0). Interest charges are almost always front-loaded. that the principal component increases gradually with each payment. per: The number of the payment period (where the first payment is 1 and the last payment is the same as nper). use 1 for beginning-of-period payments. respectively: PPMT(rate.

The End .

- description
- SampleData.xlsx
- Excel 2007 Vlookup for Budget Example
- Creating DashBoards in Obiee
- Agriculture Advances
- 48676626 Credit Digests as of 115 Am
- Excel Tutorial
- Inventory Aging Analysis
- 30238661-Case-Table-Credit (1).docx
- loan agreement.docx
- US Treasury
- Goshen Redevelopment Commission Sept. 9, 2014
- MDX Provider for Oracle OLAP User and Admin Guide
- Arrangement
- Certified Excel Expert_Finatics
- LendingCLendingClub-Notes-Clean_As_Filedlub-Notes-Clean as Filed 20130430
- 19310302_1115a_Minutes.pdf
- Reliance Car Loan Agreement
- Def Writ Submi
- c++ program
- Defaulted Bank Loan Recoveries
- Sample Calculation 2
- Mortgage Brokers Australia
- 2_FIN10002_chapter1_2015(2).pdf
- home loan ahmed.docx
- Philippine National Bank, Petitioner, Vs. Court of Appeals
- description
- Home Loan Ahmed
- Objective 5.01 Handouts
- Excel

Sign up to vote on this title

UsefulNot usefulClose Dialog## Are you sure?

This action might not be possible to undo. Are you sure you want to continue?

Loading