Exploring Microsoft
Office Excel 2007
Chapter 2:
Formulas and Functions
Robert Grauer, Keith Mulbery, Judy Scheeren
Committed to Shaping the Next Generation of IT Experts.
1
Copyright
2008
Pearson
Prentice Hall.
rightsreserved.
reserved.
Copyright© ©
2008
Prentice-Hall.
All All
rights
Objectives
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Create and copy formulas
Use relative and absolute cell addresses
Use AutoSum
Insert basic statistical functions
Use date functions
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Objectives (continued)
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Use the IF function
Use the VLOOKUP function
Use the PMT function
Use the FV function
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Formula Basics
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Formulas are used to perform mathematical
operations and arrive at a calculated result
Must begin with an equals (=) sign
Contain mathematical operators
Used to automate calculations that were once
done manually
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Creating a Formula
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Rather than typing a cell address, use an
alternative method that involves minimal
typing
Pointing uses the mouse or arrow keys to
select the cell directly when creating a
formula
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5
Copy Formulas with Fill Handle
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Use the fill handle, a small black square in
the bottom right corner of a selected cell, to
copy formulas
Provides a clear-cut alternative method for
copying the contents of a cell
Can be used to duplicate formulas
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Relative vs. Absolute Addressing
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Relative cell references change relative to the
direction in which the formula is copied
Absolute cell references are exact; they do not
change when a formula is copied
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Indicated by dollar ($) signs in front of the column letter and
row number
Most often used when the value need not change, such as
a sales tax percentage.
Use the F4 key to toggle between relative and
absolute cell referencing
Copyright © 2008 Pearson Prentice Hall. All rights reserved.
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Functions
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A predefined formula that can be selected
from a list
Already has the formula information; just
requires cell references
Do not replace all formulas
Take values, perform operations, and return
results
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Functions (continued)
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SUM is the most commonly used function
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Syntax refers to the grammatical structure of a
formula
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represented by a sigma ()
Adds values within a specified range
Must adhere to stated structure of formula
Arguments are values ─ used as input and returned
as output
Function Wizard automates entering the function
formulas
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Using AutoSum ()
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Automates the SUM function
Click the cell where you want the result
Click AutoSum button
Select the range of cells you want to sum
Press Enter to complete
An example of AutoSum,
 =Sum(C4:C10) represents sum of all the
cells in the cell range C4 to C10
Copyright © 2008 Pearson Prentice Hall. All rights reserved.
10
Basic Statistical Functions
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Perform a variety of calculations to aide in
decision making process
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AVERAGE calculates the average of a range of
numbers
MIN calculates the minimum value in a range
MAX calculates the maximum value in a range
COUNT counts the number of values within a
range
MEDIAN finds the midpoint value in a range
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Date Functions
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Efficiently handle time-consuming procedures
Help analyze data related to the passing of
time
TODAY function places the current date in
the selected cell
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Updates when file is opened again
NOW function displays current date and time,
side by side
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Logical and Lookup Functions
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Logical functions help in decision making
Lookup functions are very useful for looking up data
entered in a specific range of cells
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Example: Well suited well for tax tables
Searches for a value based on a cell reference
Two types: VLOOKUP and HLOOKUP
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VLOOKUP arranges data vertically
HLOOKUP arranges data horizontally
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IF Function
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Used to determine whether a condition has
been met
Has three arguments:
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a condition tested to determine if it is true or false
the resulting value if the condition is true
the resulting value if the condition is false
When the condition is met, the formula
performs one task; when it is not met, the
formula performs another task
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VLOOKUP
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Allows for lookup within a vertical table of
information
Well suited for large tables of data, such as
tax tables
Has three arguments:
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a lookup value stored in a cell
a range of cells containing a lookup table
the number of the column within the lookup table
that contains the value to return
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VLOOKUP (continued)
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The lookup value ─ value to look up in a
reference table
The lookup table ─ a range of cells containing
the reference table
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A breakpoint ─ is the lowest numeric value for a
category or series
The column index number ─ the column
number in the lookup table that contains
return values
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Financial Functions
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Used for decisions involving payments,
investments, interest rates, etc.
Allows you to consider several alternatives
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PMT Function
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Used to calculate loan payments
Has three arguments:
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the interest rate per period
the number of periods
the amount of the loan
Computes the associated payment on a loan
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FV Function
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Used to determine the future value of an
amount, such as an investment
Has three arguments:
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The interest rate (also called the rate of return)
The number of periods (how long you will pay into
the investment)
The periodic investment (how much you will invest
per year)
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