Microsoft Office Tutorials and References

In Depth Information

**Add a Function to a Formula**

6

chapter

Building Formulas

The Function Arguments dialog

box appears.

8
Click inside an argument box.

9
Click the cell that contains the

argument value.

You can also type the

argument value.

0
Repeat Steps
and
to fill as
9

many arguments as you need.

A
The function result appears

here.

!
Click
OK.

B
Excel adds the function to the

formula.

C
Excel displays the formula

result.

Note:
In this example, the

result appears in the

parentheses to indicate a

negative value. In loan

calculations, money that you

pay out is always a negative

amount.

Note:
If your formula requires

any other operands and

operators, press and then

type what you need to complete

your formula.

How do I calculate a monthly financial result if I only have yearly values?

This is a common problem. For example, if your loan payment worksheet contains an annual

interest rate and a loan term in years, how do you calculate the monthly payment using the

PMT function? You need to convert the rate and term to monthly values. That is, you divide

the annual interest rate by 12, and you multiply the term by 12. For example, if the annual

rate is in cell B2, the term in years is in B3, and the loan amount is in B4, then the function

PMT(B2/12, B3*12, B4) calculates the monthly payment.