Microsoft Office Tutorials and References
In Depth Information
Tutorial C: Building a Decision Support System in Excel
FIGURE C-18
Calculations sections nearly complete
The last item in the Calculations section is the Interest Rate for Business Loan (cell B21). Remember the
bank
s statement that if the economy recovers, it could lower the interest rate from 5% to 4%. So, you will
need one more IF function to insert into cell B21 based on the economic outlook. If the economic outlook is
for a Recession (R), then the interest rate will be 5% annually; if the outlook is for a Boom (B), then the
interest rate will be 4% annually. Now that you are familiar with the IF function, you can simply type the
expression into the cell yourself. Click cell B21, type =IF(C8=
,5%,4%), and press Enter.
You will immediately notice that 5% appears in the cell because you have R in the input cell for
Economic Outlook. You may also notice that you now have a negative \$12,950 in the Business Loan Payment
cells (C32 and D32). See Figure C-19 to compare your results.
R
FIGURE C-19