Microsoft Office Tutorials and References

In Depth Information

**To Enter the Formulas in the Amortization Schedule**

4

•
Click the Enter box in the

formula bar to complete the

entry (Figure 4–39).

What happens when the Enter box

is clicked?

Excel displays the interest paid

after 1 year (13312.37332) in cell

K3. Thus, the lending institution’s

gross proﬁ t for the ﬁ rst year of

the loan is $13,312.37.

values displayed

using General

style format

Why are some of the cells in the

range H3:K3 formatted?

When you enter a formula in a

cell, Excel assigns the cell the same

format as the ﬁ rst cell reference

in the formula. For example,

when you enter =c6 in cell H3,

Excel assigns the format in cell C6

to cell H3. The same applies to

cell J3. Although this method of

formatting also works for most

functions, it does not work for the

IF function. Thus, the results of

the IF functions in cells I3 and K3

are displayed using the General

style format, which is the format

of all cells when you open a new

workbook.

amount paid

on principal

after one year

lending

institution’s

gross proﬁ t

for ﬁ rst year

Figure 4–39