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
paid on loan
gross proﬁ t)
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
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.