It Formulae Notes
It Formulae Notes
toth olloving
Ihe ul. Luw
ealuate.
Dednltlon
Operator Rang'
Interct
Union
Nyzalion
|Ienenlog"
Eponentialion
Multiplicationand division
"and/ |Additionand subtraction
Textconcatenation
Comparison
lible 2.31: Oerator Irnwder
It the operators are of same Precedence,they are alwaysevaluatedfrom leftto right:15/342,
..never 3, existing for.,
operation in parentheses is calculated first. To add parentheses to an
AnT
sclatthe cell containingthe formula andclick in Formula Bar. 1ype parentheses around
initial =sign.
e\pessions in the formula, but not around the
default. the aboveexample formula will be calculated in the following manner. First, Hours
Bv added to the gross pay for the secor:
willemultiplied with pav ratc. Then, Hours Weck 1will be
=(Hours Week 1 + Hours Week 2)*pavra,
week. To correct this, the formula shouldbe written as:
2.4 USING FUNCTIONS
calculate results used in statistics, finars
Excel includes hundreds of functions that can be used to
engineering, mathematics, and other felds.
Functions are structured programs that calculate aspecific result: a total, an average, the amountc:
amonthlv loan pavment, or the geometric mean of a group of numbers. Each function has aspeáî:
order or sVntax that must be used for the function to work properly.
that is the function nar:
Functions are formulas, so allfunctions begin with the equal sign (-). After parentheses.
followed bv one or more arguments separated by commas and enclosed in
Example:=SUM(D6:D11)
Excel's functions are grouped into 10 categories.
Category Examples
Financial Calculates interest rates, loan payments, depreciation amountsed
Date and Time Returns the current hour, day of week or year, time, or date.
Maths and Trignometrical Calculates absolute values, cosines, logarithms, etc. standar'
Statistical Calculates total,average, high andlownumberssin arange;
deviation etc. hyperlinks*"
Lookup and reference Searches for and returns values from a range; creates
network or Internet documents.
tanrel
As with any formula, the results of the function are displayed in the active cell. The function ite.
is displayed in the Formula Bar when the cell is active.
If the function needed is not listed in the Name box list, choose More Functions at the bottom of %.
list to open the Insert Function dialog box.
Saarrh r ndhon
ANS()
Rsbens he absoe volÛ f nber, humberwovt ugn
OK
B
1 Data Description
2 10% Annual discount rate
-10.000
Initial cost of investment ot 1e year from
43,000
today
S_4200
Return from first year
6_6,800 Return from second year
Formula Return from third year
=NPV(A2, A3, A4, A5,A6) or NPV(A2, A3:A6) Net Description (Result)
present value of thi s investment
(1,188.44)
Table 2.5.1: Exanple of NPVfunction
In the preceding example, we
nayment occurs at the end of theincluded the initial $10,000 cost as one of the val1 ues,
first period. because the
ithe paymentwould have occurred at the
included as one of the values, and the formula beginning of the first period, the initial :ost would not be
there is aloss of $9,000 in the fourth year, the would have been =NPV(A2, A4:A6) +A3. Supposing,
formula would have been =NPV(A2,A
BIFV:It returns the future value of an 4:A6,-9000) + A3.
Constant interest rate. Itssyntax is: investment based on periodic, constanl : payments and a
FV(ate, nper, pmt, (pv] [typel)
Rate is the interest rate per
period.
Nper is the total number of payment
periods in an
Pmt is the payment made each period. If pmt is annuity.
Pvis the present value, or the
omitted, the user must include the pv argument.
Ipv is omitted, it is assumedlump-sum amount that a
to be 0(zero), and the userseries of future payments isworth right now.
must include thepmt rgument.
ype indicates when payments are due. It can
be0. take values 0 or 1. Iftype is omit ted, it is
assumed to
Set type equal to
0 If payments are d ue
At thhe end of the eriod
At the beginningiof the period
Table 2.5.2: Value of lypeargumn! in FVjumctivn
the arguments, cash paid out, such as
whereas cash reeived, such as dividend depositsisto savings, is represented by negative numbers;
cheques, representecl by positive numbers.
B
Data
|Description
-70,000 Initial costof abusiness
12,000 Nct income for the first year
15,000 Net incomefor the second ycar
18,000 Net income for the third year
21,000 Net income for the fourth year
26,000 Net income for the fifth year
Formula
-IRR(A2:A7) Description (Result)
-\RR(A2:A4, -10%)
Investment's internal rate of return after five years (9%)
10 Tocalculate the internal rate of
guess (-44%) return after two years, include a
Table 2.5.4:
Exanple of IRR fncion
n PMT: It calculates the
payment for a loan (installment) based on
constantinterest rate. Its syntax is: constant payments and a
PMT (rate, nper, pv, [fv] [typel)
Date is the interest rate per
period for the loan.
Nper is the total number of
payments for the loan.
Pris the present value, or the total
as the principal. amournt that a series of future payments is worth now; also
known
Fvis the future value, or a cash
balance to be attained after the last payment is
Tvpe (as in FV function) indicates made, 0(zero) if omitted.
when payments are due.
Example:
Data
2 8% |Description
3 10
|Annual interest rate
4
10,000 Number of months of payment
|Amount of loan
Formula Description (Result)
=PMT(A2/12, A3, A4) Monthly payment for this loan(-1,037.03)
=PMT(A2/12, A3, A4, 0, 1) Monthly payment for this loan, except
the beginning oftheperiod (-1,030.16) payments are due at
Table 2.5.5: Exanuple of PMTfuction
E) SLN: It
returns the straight-line depreciation of an asset for one period. Its syntax is:
SLN(cost, salvage, life)
Cost is the initial cost of the
asset.
Salvage is the salvage value of the asset at the end of its life.
Life is the
number of periods over which theasset is depreciated, alsocalled the useful life of the asset.
INFORMATION TECHNOLOGY 217
12*3.."nur
B)FACI: It returnsthe factorial of a number. The factorial of a number is equal to
Syntac FACT(number)
the number is pCta
Number is the non-negativenumber for which the user wants the factorial. If
integer, it is truncated.
Example:
Formula Description
=FACT) Factorial of 5, 1*2*3*4*5(120)
-FACT(1.9) Factorial of the integer of 1.9 (1)
-FACT(0) Factorial of 0(1)
FACT1) Negative numbers cause an error value (#NUM!)
Table 2.6.2: Exan:scEACT i i n
C) GCD: It returns the greatest common divisor of two or more integers.
Syntax GCD(number1, [number2],..)
Number1, number2,.. are 1to 255 values. Numberl is required, subsequent numbers are optt
If any value is not an integer, it is truncated.
The arguments should be non-negative and should be less than 2^53.
Data
19.5
Formula
=INT(S.9) Description (Result)
Rounds 8.9 down (8)
-INT(-8.9) Rounds -8.9 down (-9)
=A2-INT(A2) Returns the decimal part of apositive real number in cell
A2 (0.5)
Table 2.6.4:Exa1ples of INT fiunction
aLN: Itreturns the natural logarithm of a
e(271828182845904). number, Natural logarithms are based on the
constant
Syntax: LN(number)
Number is the positive real number for which the
user wants the natural logarithm.
ALOG:It returns the logarithm of a number to a
specified base.
Syntaxc LOG(number, [basel)
Number is the positive real number for which the user
wants the natural logarithm.
Base is the base of the logarithm, 10 if
omitted.
G)MOD: It returns the remainder after
as divisor. number is divided by divisor. The result has the same sign
Syntax: MOD(number, divisor)
Number is the number for which theuser wants to find the
remainder.
DiVISor is the number by which the user wants to divide the
If divisor is 0, number.
MOD returns the#DIV/0! error value.
The MOD
function can be expressedin terms ofthe INTfunction: MOD(n, d) =n-d*INT(n/ d)