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Excel Formulas: Copying and Pasting Cell References, Financial Functions - Prof. Christoph, Study notes of Introduction to Business Management

Mississippi University for Women (MUW)Introduction to Business Management
Prof. Christopher S. Tollison

Examples and explanations of how to copy and paste cell references in excel, focusing on updating formulas when copying to new cells. Additionally, it introduces the pmt, ppmt, and ipmt functions for calculating loan payments and components.

Typology: Study notes

Pre 2010

Uploaded on 08/07/2009

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Miscellaneous Topics
September 14, 2006
Review of Copying and Pasting Cell References :
oCell A5 contains the formula, = A1 + B1. When you copy the contents of cell A5 into
B6, what formula is inserted into the destination cell?
What is your source cell? A5
What is your destination cell? B11
How many columns between my source and destination?
One column to the right
How many rows between my source and destination?
One row down
When pasted to the destination cell, the formula should update to reflect its
position one column to the right and one row down from the source cell. The
destination cell formula should be:
=B2 + C2
oCell A5 contains the formula, = A1 + B1. When you copy the contents of cell A5 into
D7, what formula is inserted into the destination cell?
What is your source cell? A5
What is your destination cell? D7
How many columns between my source and destination?
Three columns to the right
How many rows between my source and destination?
Two rows down
When pasted to the destination cell, the formula should update to reflect its
position one column to the right and one row down from the source cell. The
destination cell formula should be:
=D3 + E3
oMore Practice :
Cell D2 contains the formula, = B7 + C5. When you copy the contents of cell
D2 into C1, what formula is inserted into the destination cell?
Answer: = A6 + B4
pf2

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Miscellaneous Topics September 14, 2006  Review of Copying and Pasting Cell References: o Cell A5 contains the formula, = A1 + B1. When you copy the contents of cell A5 into B6 , what formula is inserted into the destination cell?  What is your source cell? A  What is your destination cell? B  How many columns between my source and destination? One column to the right  How many rows between my source and destination? One row down  When pasted to the destination cell, the formula should update to reflect its position one column to the right and one row down from the source cell. The destination cell formula should be: =B2 + C o Cell A5 contains the formula, = A1 + B1. When you copy the contents of cell A5 into D7, what formula is inserted into the destination cell?  What is your source cell? A  What is your destination cell? D  How many columns between my source and destination? Three columns to the right  How many rows between my source and destination? Two rows down  When pasted to the destination cell, the formula should update to reflect its position one column to the right and one row down from the source cell. The destination cell formula should be: =D3 + E o More Practice:  Cell D2 contains the formula, = B7 + C5. When you copy the contents of cell D2 into C1, what formula is inserted into the destination cell?  Answer: = A6 + B

 Cell A5 contains the formula, = $A$1 + B1. When you copy the contents of cell A5 into B6 , what formula is inserted into the destination cell?  Answer: = $A$1 + C  More Financial Functions: o Recall from last lecture that the PMT function is used to calculate the total monthly payment. o The PPMT function is used to calculate how much of a monthly payment is used to pay off the principal. PPMT(rate, period, nper, pv, [fv=0], [type=0])  The rate argument is the interest rate charged per period (determined by dividing the annual interest rate by the number of payment periods in a year). The period argument is the number of the payment period in which you want to examine. The nper argument is the overall number of payments. The pv argument is the present value of the loan. The fv and type arguments are optional and we’ll just ignore them. o The IPMT function is used to calculate how much of the monthly payment is used for paying the interest. IPMT(rate, period, nper, pv, [fv=0], [type=0])  The rate argument is the interest rate charged per period (determined by dividing the annual interest rate by the number of payment periods in a year). The period argument is the number of the payment period in which you want to examine. The nper argument is the overall number of payments. The pv argument is the present value of the loan. The fv and type arguments are optional and we’ll just ignore them.