Microsoft Office Tutorials and References

In Depth Information

**Other Financial Functions**

5
In cell E3, type
5
and then select cell B8 to recalculate the loan information in cells C6, E4,

E5, and E6 (Figure 4–18).

What do the results of the new calculation mean?

As you can see from Figure 4–18, the monthly payment for the Prius is $432.11. By paying

for the car over a ﬁ ve–year period at an interest rate of 10.25%, you will pay total interest

of $5,706.40 on the loan and pay a total cost of $31,206.40 for a $25,500.00 Prius.

with down payment

of $5,280.00, monthly

payment for $25,500.00

Prius is $432.11 for 5 years

total interest

paid on loan

(lending

institution’s

gross proﬁ t)

total cost

of Prius

Figure 4–18

To Enter the Original Loan Data

The following steps re–enter the original loan data.

1
Select cell C3. Type
Home
and then press the
DOWN
ARROW
key.

2
In cell C4, type
265000
and then press the
DOWN
ARROW
key.

3
In cell C5, type
30000
and then select cell E2.

4
In cell E2, type
5.75
and then press the
DOWN
ARROW
key.

5
In cell E3, type
18
and then select cell B8.

What is happening on the worksheet as I enter the original data?

Excel instantaneously recalculates all formulas in the worksheet each time you enter a value.

Excel displays the original loan information as shown in Figure 4–17.

Testing a Worksheet

It is good practice to

test the formulas in a

worksheet over and

over again until you

are conﬁ dent they

are correct. Use data

that tests the limits

of the formulas. For

example, you should

enter negative numbers,

zero, and large positive

numbers to test the

formulas.

Can the Undo button on the Quick Access Toolbar be used to change back to the original data?

Yes, but the Undo button must be clicked ﬁ ve times, once for each data item.