Microsoft Office Tutorials and References
In Depth Information
Session 2.2
To insert the IF function to evaluate whether the loan is affordable:
1. Click cell D16 , type Conclusion , and then press the Tab key.
2. In cell E16, type =IF(E14<E15,“Yes”,“No”) and then press the Enter key. The text “No”
appears in cell E16, indicating that the value in cell E14 is not less than the value in cell E15,
and, therefore, the conditions of the mortgage are not acceptable to Amanda.
Amanda asks you to reduce the size of the loan to $165,000 to see whether this amount
changes the conclusion about the mortgage’s affordability.
3. Click cell E4 , type -165,000 as the new loan amount, and then press the Enter key. As
shown in Figure 2-32, the monthly payment drops to about $936 and the net yearly savings
rise to about $5,354. Cell E16 displays the text string “Yes,” indicating that this loan does
satisfy Amanda’s conditions for affordability.
Inserting a Logical function
Figure 2-32
lower loan amount
higher yearly savings
IF function tests
values to determine
if the loan is affordable
Now Amanda knows that buying a house is something that her family budget can support
in the near future if she and Joseph manage their budget well. You will now save and close
the Budget3 workbook.
4. Save your changes to the workbook, and then close it.
Excel has several other Logical functions that you can use to create more complicated
tests. Figure 2-33 describes the syntax of each of these functions.
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