Section 8
Topics Covered
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The =IF() function ........................................................... 8-2
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The =OR() function ......................................................... 8-6
The =AND() function ...................................................... 8-6
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The =NOT() function ...................................................... 8-7
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The =PMT() function ...................................................... 8-9
The =FV() function........................................................ 8-13
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Time Required: 40 Mins
Microsoft Excel 2000 Introductory Course ! Student Workbook ! © 2000 ! www.StudyIT.net
8-1
The =IF() Function
The =IF() function can be used to check whether a specific condition is true or not, returning
one result if the condition is true, and another if it's false.
The syntax of the =IF() function is
=IF(condition, true value, false value)
Suppose you want to pay a £50 bonus to all sales staff who have exceeded their £10,000
target. To do this you would check the total sales figures to see who qualifies. If a rep's total
sales figure is greater than £10,000, the bonus would be paid. Otherwise, the rep doesn't
qualify for the bonus.
This example is illustrated below.
Look at the formula that has been entered into cell C4. The formula is constructed as
follows:
Condition
Result if false
=IF(B4>10000, 50, 0)
Result if true
Microsoft Excel 2000 Introductory Course ! Student Workbook ! © 2000 ! www.StudyIT.net
8-2
The =IF() Function
The results for the example shown on the previous page are illustrated below.
Text Results
Should you want to display text as one or both of the results, you would simply type the text
(enclosed in " quotation marks) into the formula as follows:
=IF(B4>10000, "Yes", "No")
In this example, the word Yes would be displayed for each sales rep who qualifies for a
bonus, and the word No for each sales rep who doesn't.
Conditional Operators
The example used above uses the > (greater than) operator. The condition within the =IF()
<> (not
function can incorporate any of the standard operators such as = (equal to),
equal to), <= (less than or equal to), and so on.
Microsoft Excel 2000 Introductory Course ! Student Workbook ! © 2000 ! www.StudyIT.net
8-3
The =IF() Function
Creating An Embedded =IF() Formula
When testing conditions on your worksheet, you may find that from time to time you need to
check two or more related conditions. For example, once you have found that a sales rep has
met his target, you may want to check by how much, awarding a higher bonus for exceeding
the target by more than a set amount.
To do this, you can create a formula that contains more than one =IF() function.
The illustration below shows the formula required to award a £50 bonus for exceeding the
target, but a £100 bonus for exceeding it by more than £5,000.
1. Check this condition...
2. ...if true, check this condition...
3. ...if first condition not true, show 0
=IF(B4>C4,IF(B4>C4+5000,100,50),0)
4. ...if second condition is true, show 100
5. ...if second condition is false, show 50
Exercise 8-1
1. Open the Bonus workbook held in the Excel 2000 Intro Exercises folder.
Microsoft Excel 2000 Introductory Course ! Student Workbook ! © 2000 ! www.StudyIT.net
8-4
Exercise 8-1
2. In cell D4, enter the formula =IF(B4>=C4,"Yes","No") then copy the formula for each
salesperson.
This will test whether or not each person met their target.
3. Follow the instructions below to calculate how much of a bonus each sales rep is due,
based on these conditions:
!
If the sales rep has earned more than £12,000 in commission, a £100 bonus is payable.
!
If the sales rep has earned less than £12,000 but more than £8,000 in commission, a
£50 bonus is due.
!
If the sales rep has earned £8,000 or less in commission, no bonus is due.
— Into cell F4 enter the formula
=IF(E4>12000,100,IF(E4>8000,50,0))
— Copy the formula down column F.
4. Enter a formula into column G to calculate the total amount payable to each sales rep.
5. Save the changes to the workbook and then close it.
Microsoft Excel 2000 Introductory Course ! Student Workbook ! © 2000 ! www.StudyIT.net
8-5
Logical Functions
Earlier you learned how to use the =IF() function. Logical functions such as =IF() are used
to test whether a given condition is true or false. Other logical functions are described on the
next few pages.
The =OR() Function
The =OR() function's syntax is
=OR(logical1,logical2,...)
This function will return a value of TRUE if one or more arguments (logical1, logical2, and
so on) are true. Otherwise, the result will be FALSE.
In the example below, the result would be TRUE, as at least one of the arguments is true.
=OR(1+1=2, 2+2=5)
The =AND() Function
The =AND() function's syntax is
=AND(logical1,logical2,...)
This function will return a value of TRUE if each of the arguments (logical1, logical2, and so
on) is true. Otherwise, the result will be FALSE.
In the example below, the result would be FALSE, as at least one of the arguments is not
true.
=AND(1+1=2, 2+2=5)
Microsoft Excel 2000 Introductory Course ! Student Workbook ! © 2000 ! www.StudyIT.net
8-6
Logical Functions
The =NOT() Function
The =NOT() function's syntax is
=NOT(logical)
This function will return a value of TRUE if the argument (logical) is false. Otherwise, the
result will be FALSE.
In the example below, the result would be TRUE:
=NOT(2+2=5)
Calculating Using Logical Results
The results TRUE and FALSE are stored as 1 and 0 respectively. This means that you can
use the results for calculations. You could, for example, calculate the total number of TRUE
conditions. You cannot, however, simply add all the TRUE results: you must first multiply
them by 1 to return an integer that can be used in the calculation.
For instance, at step 6 in the following exercise you will calculate the number of branches
that hit target. Each branch that did hit target will have a TRUE result in column D,
previously calculated at step 3. Before the TRUE results can be counted, they must be
multiplied by 1.
Microsoft Excel 2000 Introductory Course ! Student Workbook ! © 2000 ! www.StudyIT.net
8-7
Exercise 8-2
1. Open the workbook Targets held in the Excel 2000 Intro Exercises folder.
2. Column D is to show whether each branch met its target. Therefore, enter the formula
=C3>B3 into cell D3.
This formula returns a value of TRUE as the North branch did hit its target.
3. Copy the formula for the other branches.
4. To answer the question Did all branches hit target? enter the formula =AND(D3:D5)
into cell C7.
As not every value in the range is not TRUE, the result is FALSE.
5. To answer the question Did any of the 3 branches hit target? enter the formula
=OR(D3:D5) into cell C8.
Because at least one of the values in the range is TRUE, the result is TRUE.
6. Follow the instructions below to calculate the number of branches that hit target.
— In cell E3, enter a formula to multiply the result in cell D3 by 1 then copy the formula
for the other branches.
— Enter a formula that will show the total number of branches that hit target into cell C9.
7. Save the changes to the worksheet and then close it.
Microsoft Excel 2000 Introductory Course ! Student Workbook ! © 2000 ! www.StudyIT.net
8-8
The =PMT() Function
This function is used to calculate the payments on a loan at a specified interest rate over a
given term.
The syntax of the function is:
=PMT(Rate,Nper,Pv,Fv,Type)
Note: The arguments shown in italic are optional, i.e. they don't have to be specified.
The function's arguments are explained below.
Rate The interest rate for the loan. For example, if the interest rate is 10% per annum and
the payments will be made annually, the value entered into the formula should be
10%.
If, however, the interest rate is 10% per annum and the payments will be made
monthly, the value entered into the formula should be 10%/12.
Nper The number of periods over which the loan will be repaid. For example, if the loan is
to be repaid over 24 months, the value entered into the formula should be 24.
Pv
The total value of the loan.
Fv
If you want to attain a cash balance at the end of the loan period, the value should be
entered into the formula.
Type Type can be either 0 or 1. If the payments will be made at the beginning of the
specified period, enter 1. If the payments will be made at the end of the month, either
enter 0 or don't enter this argument.
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8-9
Exercise 8-3
1. Open the workbook LoanCalc held in the Excel 2000 Intro Exercises folder.
2. Following the instructions below, use =PMT() function to calculate the monthly
repayments on a car loan of £4,000 over 2 years at an interest rate of 8.5% per annum.
Rather than enter the formula directly into the cell, you'll make use of the formula palette.
— Select cell B8 then click on the
Edit Formula.
— Select More Functions from the Function drop-down list.
The Paste Function dialogue box is displayed.
— From the Function category list box, choose Financial, then select PMT from the
Function name list box.
— Click OK.
Microsoft Excel 2000 Introductory Course ! Student Workbook ! © 2000 ! www.StudyIT.net
8-10
Exercise 8-3
The formula palette expands to display the function's arguments.
— The first argument is Rate. As the interest rate is held in cell B5, either type B5 into
the Rate text box, or click on cell B5 on the worksheet, shrinking the dialogue box if
necessary.
— As the interest rate in cell B5 is an annual interest rate, and you want monthly
payments, it has to be divided by 12. So, type /12 into the Rate text box so that the
entry reads B5/12.
— Press [TAB] to move to the Nper (number of periods) argument.
— As cell B6 holds the data for this argument, either type B6 into the text box or click on
cell B6, then press [TAB] to move to the Pv argument.
— The amount of the loan (Pv) is held in cell B4, so either type B4 into the text box or
click on cell B4.
The formula palette will now look like this:
Result of the
formula as it
currently stands
— Click OK to display the result of your formula, which is -£183.66.
Microsoft Excel 2000 Introductory Course ! Student Workbook ! © 2000 ! www.StudyIT.net
8-11
Exercise 8-3
3. Modify the values in cells B4 and B6 so that the loan period is 3 years and the amount is
£6,000.
The result of the formula changes to -£192.20.
4. Change the formula so that it calculates the monthly payments for a loan of £1,000 to be
repaid over 18 months.
The result of the formula becomes -£59.83.
5. Save the changes to the worksheet then close it.
Microsoft Excel 2000 Introductory Course ! Student Workbook ! © 2000 ! www.StudyIT.net
8-12
The =FV() Function
This function is used to calculate the redemption value of an investment assuming a series of
fixed payments at a fixed interest rate. The syntax of the function is:
=FV(Rate,Nper,Pmt,Pv,Type)
Note: The arguments shown in italic are optional, i.e. they don't have to be specified.
The function's arguments are explained below.
Rate The interest rate for the investment. For example, if the annual interest rate is 11%
and the payments will be made annually, the value entered into the formula should be
10%.
If, however, the interest rate is 10% per annum and the payments will be made
monthly, the value entered into the formula should be 10%/12.
Nper The number of periods over which the investment payments will be made. For
example, a pension that is to be paid monthly over 30 years would be entered as 360.
Pmt
The amount your will be paying into the investment fund per period, e.g.
monthly/annually.
Pv
Is the present value, or a lump sum amount that the series of future payments is worth
now.
Type Type can be either 0 or 1. If the payments will be made at the beginning of the
specified period, enter 1. If the payments will be made at the end of the month, either
enter 0 or don't enter this argument.
Microsoft Excel 2000 Introductory Course ! Student Workbook ! © 2000 ! www.StudyIT.net
8-13
Exercise 8-4
1. Open the worksheet Pension.xls held in the Excel 2000 Intro Exercises folder.
2. Using the =FV() function, calculate the redemption value of the pension fund and show in
B7.
3. Change the annual contribution to 4000 to see the affect of the redemption value.
4. Save the changes and close the worksheet and close it.
Microsoft Excel 2000 Introductory Course ! Student Workbook ! © 2000 ! www.StudyIT.net
8-14
Questions and Answers
1. If cell B4 contains the value 500, what is the result of the following formula?
=IF(B4>100,20,0)
2. If the value in cell A10 is 1000, what is the result of the following formula?
=IF(A10>10000,500,IF(A10>5000,50,0))
3. Write the results of these formulas in the spaces provided.
=OR(TRUE,TRUE,FALSE)
=AND(FALSE,FALSE,FALSE)
4. In the space below write the =PMT() function required to calculate the quarterly
payments for a loan of £20,000 over 3 years given an interest rate of 7%.
Microsoft Excel 2000 Introductory Course ! Student Workbook ! © 2000 ! www.StudyIT.net
8-15
A2
Z
Index
A
I
And Function, 8-6
IF Function, 8-2
embedded, 8-4
C
Conditional Operators, 8-3
L
Logical Functions, 8-7
F
Functions
And, 8-6
Fv, 8-13
IF, 8-2, 8-4
logical, 8- 7
Not, 8-7
Or, 8-6
Pmt, 8-9
Fv Function, 8-13
N
Not Function, 8-7
O
Or Function, 8-6
P
Pmt Function, 8-9
A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
P
Q
R
S
T
U
V
W
X
Y
Z
Microsoft Excel 2000 Introductory Course ! Student Workbook ! © 2000 ! www.StudyIT.net
8-16