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

The finished spreadsheet