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Microsoft Office Excel 2003
Tutorial 2 – Working With Formulas and
Functions
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Use Excel’s functions
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• You can easily calculate the sum of a large number of
cells by using a function.
• A function is a predefined, or built-in, formula for a
commonly used calculation.
• Each Excel function has a name and syntax.
– The syntax specifies the order in which you must enter the
different parts of the function and the location in which
you must insert commas, parentheses, and other
punctuation
– Arguments are numbers, text, or cell references used by
the function to calculate a value
– Some arguments are optional
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Work with the Insert Function button
• Excel supplies more than 350 functions organized
into 10 categories:
– Database, Date and Time, Engineering, Financial,
Information, Logical, Lookup, Math, Text and Data,
and Statistical functions
• You can use the Insert Function button on the
Formula bar to select from a list of functions.
• A series of dialog boxes will assist you in filling in
the arguments of the function and this process also
enforces the use of proper syntax.
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Math and Statistical functions
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Define functions, and
functions within functions
• The SUM function is a very commonly used math function
in Excel.
• A basic formula example to add up a small number of cells
is =A1+A2+A3+A4, but that method would be
cumbersome if there were 100 cells to add up.
• Use Excel's SUM function to total the values in a range of
cells like this: SUM(A1:A100).
• You can also use functions within functions. Consider the
expression =ROUND(AVERAGE(A1:A100),1).
– This expression would first compute the average of all the values
from cell A1 through A100 and then round that result to 1 digit to
the right of the decimal point
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Copy and paste formulas
and functions
• Copying and pasting a cell or range of cells is a simple, but
highly effective means for quickly filling out a large
worksheet.
• To copy and paste a cell or range:
– Select the cell or range to be copied and then click the Copy button
on the standard toolbar
– Select the cell or range into which you want to copy the selection
and then click the Paste button on the standard toolbar
– Once you are finished pasting, press the Esc key to deselect the
selection
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Copy and paste effects
on cell references
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• Copied formulas or functions that have cell references are
adjusted for the target cell or range of cells.
• For example, if cell G5 contains the formula =F5*B5/B7,
and you copy and paste this formula to cell G6, the
formula in cell G6 will be =F6*B6/B8.
• This may or may not be correct for your worksheet,
depending upon what you are trying to do.
• You can control this automatic adjusting of cell references
through the use of relative and absolute references.
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Problems using copy and paste with
formulas
• When Excel does not have enough room to display an entire
value in a cell, it uses a string of these # symbols to represent
that value.
• For example, the formula in cell J5 is =F5-(H5+I5) and this was
pasted into cell J6 by updating the cell references there to =F6(H6+I6).
• Cell G5 has the formula =F5*B5/B7 and cell G6 contains
=F6*B6/B8. This is where things went wrong. Sometimes this
automatic update is very useful and other times it does not give
you the desired result for your worksheet.
• In this case, cells B5 and B7 should be referenced in the formula
in column G in all 240 payment period rows, but in column J,
you want the cell references to be automatically updated. You
can control this result using relative and absolute references.
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Use relative references
• A relative reference is a cell reference that shifts
when you copy it to a new location on a
worksheet.
• A relative reference changes in relation to the
change of location.
• If you copy a formula to a cell three rows down
and five columns to the right, a relative reference
to cell B5 in the source cell would become G8 in
the destination cell.
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Use absolute references
• An absolute reference is a cell reference that does
not change when you copy the formula to a new
location.
• To create an absolute reference, you preface the
column and row designations with a dollar sign ($).
• For example, the absolute reference for B5 would be
$B$5.
• This cell reference would stay the same no matter
where you copied the formula.
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Use mixed references
• A mixed reference combines both relative and absolute cell
references.
• You can effectively lock either the row or the column in a
mixed reference.
– For example, in the case of $B5, the row reference would shift, but
the column reference would not
– In the case of B$5, the column reference would shift, but the row
reference would not
• You can switch between absolute, relative and mixed
references in the formula easily in the edit mode or on the
formula bar by selecting the cell reference in your formula
and then pressing the F4 key repeatedly to toggle through
the reference options.
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Open the Insert Function dialog box
• To get help from Excel to insert a function, first
click the cell in which you wish to insert the
function.
• Click the Insert Function button. This action will
open the Insert Function dialog box.
• If you do not see the Insert Function button, you
may need to select the appropriate toolbar or add
the button to an existing toolbar.
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Examine the Insert Function
dialog box
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Insert Function helpful tips
• In the Insert Function dialog box you can type in a description of what
you would like to do in the Search for a function text box and then
click the Go button, and Excel will come up with some suggestions for
you.
• You may also select a category from the drop-down box, or choose
All, which will list every function in Excel alphabetically.
• Once you make your selection and click the OK button, another dialog
box shows you all the arguments for the function.
– The arguments shown in boldfaced type are required
– While the cursor is in an argument's text box, you can either enter a value
or click a cell and that cell will appear in the text box, saving you the
trouble of typing it
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The Average Function
• The average function is necessary to calculate the
average of a range of cells.
• Like any other formula, the average function may
be copied across cells.
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Use Excel's Auto Fill features
• When you need to copy and paste a large number of
rows or columns, you can use a technique called Auto
Fill using the fill handle.
• The fill handle is a small black square located in the
lower-right corner of a selected cell or range.
• When you drag the fill handle, Excel automatically fills
in the formulas and formats used in the selected cells.
• The same rules for relative, absolute, and mixed
references apply for Auto Fill as for copy and paste.
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Auto Fill features
• The Fill behavior depends on the date(s) with which you start.
– If you select two or more dates separated by a month, then Excel will
increment the auto filled dates by a month as well.
– If you select only one date, Excel will increment the dates by one day
only.
• When you drag the fill handle, a small Auto Fill Options button
appears to the lower right of the selected cell or range.
– Common options are Copy Cells, Fill Series, Fill Formatting Only and Fill
Without Formatting
• If you are using the Auto Fill technique for dates, you have
additional options to either Fill Days, Fill Weekdays, Fill
Months or Fill Years.
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Using Auto Fill
• To use the Auto Fill feature, select the cell range
that contains the values and/or formulas you want
to copy.
• Click and drag the fill handle in the direction you
want to copy and then release the mouse button.
• If needed, click the Auto Fill Options button, and
then select the Auto Fill option you want to apply
to the selected range.
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An example of Auto Fill
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Auto Fill Options button menu options
• The Copy Cells option will copy all values and
formulas into the selected range as well as the
formats used to display those values and formulas.
• The Fill Formatting Only option copies only the
formats used to display values or formulas without
copying the values and formulas themselves.
• The Fill Without Formatting option copies only
the values and formulas without any of the formats
used in the source range.
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Date Functions
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Excel's date functions
• Excel stores dates as integers, where the integer value
represents the number of days since January 1, 1900.
– For example, the integer value for the date January 1, 2008
is 39448 because that date is 39,448 days after January 1,
1900
• You typically do not see these numbers, because Excel
automatically formats them to appear in a date format.
• This method of storing dates allows you to work with
dates the same way you work with numbers.
• Excel's commonly used date functions are DATE, DAY,
MONTH, NOW, TODAY, WEEKDAY and YEAR.
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The TODAY and Now functions
• The TODAY and NOW functions always display
the current date and time.
• You will not normally see the time portion unless
you have formatted the cell to display it.
• If you use the TODAY or NOW function in a cell,
the date in the cell is updated to reflect the current
date and time of your computer each time you
open the workbook.
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Use a formula to enter the date
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Excel's financial functions
• Financial functions are very useful to calculate information
about loans.
• Common functions are FV, IPMT, PMT, PPMT and PV.
• All these financial functions will use similar arguments
that differ based upon which function you are using.
– Think of the arguments as members of an equation
– The arguments represent the values of the equation that are known
and the function provides the solution for a single variable, or
unknown, value
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Use the financial functions
• The FV function calculates the future value of an
investment based on periodic, constant payments and a
constant interest rate per period.
• The IPMT function provides the interest payment portion
of the overall periodic loan payment.
• The PMT function calculates the entire periodic payment
of the loan.
• The PPMT function calculates just the principal payment
portion of the overall periodic payment.
• The PV function calculates the present value of an
investment.
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Financial Function descriptions
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Recognize optional arguments
• In the preceding figure, note how rate and nper are
arguments for each function.
• For some of the functions, the final two arguments of each
function are in brackets. These represent optional
arguments, meaning if you do not enter anything, the
default values for these arguments will be used.
– For example, note the PMT function has fv and type as its final two
arguments, which are optional. The assumed values, if no others
are supplied, are 0 for both
• Arguments without brackets do not have default values, so
you must supply values or cell references in order for the
function to be able to return a value.
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Use the Insert Function dialog box XP
to
enter function arguments
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Create logical functions
• A function that determines whether a condition is true or false is called
a logical function.
• Excel supports several logical functions such as AND, FALSE, IF,
NOT, OR and TRUE.
• A very common function is the IF function, which uses a logical test to
determine whether an expression is true or false, and then returns one
value if true or another value if false.
• The logical test is constructed using a comparison operator that
compares two expressions to determine if they are equal, not equal, if
one is greater than the other, and so forth.
– The comparison operators are =, >, >=, <, <=, and <>
• You can also make comparisons with text strings. You must enclose
text strings within quotation marks.
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Using the If function
• The arguments for the IF function are:
– IF(logical_test,value_if_true,value_if_false)
– For example, the function =IF(A1=10,20,30) tests whether
the value in cell A1 is equal to 10
– If it is, the function returns the value 20, otherwise the
function returns the value 30
– Cell A1 could be empty or contain anything else besides the
value 10 and the logical test would be false; therefore, the
function returns the value 30
• To insert an IF function, click the Insert Function button and
search for the IF function, then click OK.
• When the Function Arguments dialog box appears, simply fill in
the arguments.
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