Lesson 7 Objectives Use the IF function. Use the PMT and FV functions.

The syntax for the IF function is: Using the IF Function The result of an IF formula can show a value or a label, or it can compute a result. The IF function can use relational or comparison operators and the usual arithmetic operators. The syntax for the IF function is: =IF(logical_test, value_if_true, value_if_false)

Relational Operators

=IF(C5>50,C5*2, "None") IF Function Arguments Logical_test is the condition. It’s a statement or expression that is either true or false. In the example, the expression C5>50 is either true or false, depending on the value in cell C5.

=IF(C5>50,C5*2, "None") IF Function Arguments Value_if_true is what the formula shows if the logical_test is true. In the example, if C5 is greater than 50, the value in cell C5 is multiplied by 2. The value_if_true can be a formula, a value, text, or a cell reference.

=IF(C5>50,C5*2, "None") IF Function Arguments Value_if_false is what the formula shows if the logical_test is not true. The value_if_false can be a formula, a value, text, or a cell reference. In the example, if the value in cell C5 is 50 or less, the result is the word None.

IF Function Arguments

Keying an IF Function

Working with Cell Styles A cell style is a set of formatting specifications for labels or values. A cell style can contain font, number format, border, alignment, fill, and cell protection settings. The default cell style is Normal. Click the Cell Styles button to see the Cell Styles gallery.

The Cell Styles Gallery

Creating and Editing a Cell Style You can create your own cell style by choosing New Cell Style in the Cell Styles gallery. Name the style and click Format. Make your choices. Your styles appear at the top of gallery. If you edit a style, any cells using it are automatically reformatted.

Using Financial Functions Financial functions analyze money transactions. Many financial functions use the concept of an annuity. An annuity is a series of equal payments made at regular intervals for a specified period of time.

Financial Function Arguments Rate is the interest for the period. If you make monthly payments, you must divide the rate by 12 to find the monthly interest rate. Nper is the total number of periods during which a payment is made, the total number of payments. A 5-year loan with monthly payments has an Nper of 60 (12 months a year * 5 years).

Financial Function Arguments PV is present value or the amount of the loan. It is the current cash value of the transaction. FV is future value or the cash balance at the end of the time period. For an investment, FV is how much you will have at the end of your savings or investment time. For a loan, the FV is 0 because you must pay back every penny. Type specifies whether payments are made at the beginning or the end of the period.

Using PMT

Keying a PMT Function

Summary The IF function enables you to create formulas that test whether a condition is true. If it is true, you specify what should be shown or done, and you also set what happens if the condition is false. The IF function can show text in its result, it can calculate a value, or it can show a cell reference. Logical functions use relational or comparison operators.

Summary A style is a set of formatting attributes for labels and values. Cell styles appear in a gallery with Live Preview. They are coordinated with the document theme. You can remove all formatting from a cell and return to the default Normal style. You can create your own style and save it with the worksheet.

Summary Financial functions include PMT and FV and other common business calculations such as depreciation. The PMT function calculates a regular payment for a loan, using an interest rate. The FV function calculates how much an investment will be worth in the future at a given interest rate.