Microsoft Office Tutorials and References

In Depth Information

**Understanding Excel functions**

Adding a function to a formula

Excel supplies a variety of built-in functions that you can use when building a formula.

In this exercise, you’ll calculate annual loan payments using the interest rate (rate), the

total number of payments (nper), and the present value (pv) as arguments. You’ll be using

knowledge that you learned in Lesson 3, “Editing Cells” in this section when you calculate

the yearly payment.

To open the document you need for this lesson:

1

Choose File > Open and navigate to the Excel05lessons folder.

2

Click excel0502 and then click Open.

3

Select File > Save As.

4

In the Save As text i eld, type
excel0502_done
, and then click Save.

5

Click in cell B5, located to the right of
Yearly Payment
, and type the equal sign (
).

6

Click the Formulas tab on the Ribbon, and then click Insert Function (

) found in the

Function Library group.

You can choose a function from a variety of categories.

7

In the Insert Functions dialog box that opens, select Financial from the Or select a

category drop-down menu. In the Select a function section, scroll down to select PMT,

and then click OK. Excel displays the Function Arguments dialog box.

In the Insert Functions dialog box that opens, select Financial

from the Or select a category drop-down menu.