1. Exploring Microsoft® Excel® 2016 Series Editor Mary Anne Poatsy
Exploring Microsoft Office 2016
Series Editor Mary Anne Poatsy
Mulbery|Davidson
Series Created by Dr. Robert T. Grauer

2. Copyright © 2017 Pearson Education, Inc.
Chapter 7
In Chapter 7, you will learn how to manipulate data using date, logical, lookup, database, and financial functions.
Specialized Functions
Using Date, Logical, Lookup,
Database, and Financial Functions
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Objectives
Use Date Functions
Create a Nested Logical Function
Use Advanced Lookup Functions
Apply Advanced Filtering
Manipulate Data with Database Functions
Use Financial Functions
Create a Loan Amortization Table
The objectives for this chapter are:
Use Date Functions
Create a Nested Logical Function
Use Advanced Lookup Functions
Apply Advanced Filtering
Manipulate Data with Database Functions
Use Financial Functions
Create a Loan Amortization Table
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4. Objective 1: Use Date Functions
In this section, the skills include:
Use the YEARFRAC Function
Use the DAYS Function
Use the DATE, YEAR, and MONTH Functions
Use Other Date Functions
Skills:  Use the YEARFRAC Function  Use the DAYS Function  Use the DATE, YEAR, and MONTH Functions  Use Other Date Functions
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Use Date Functions
Excel Time & Date functions:
DAYS—calculates the number of days between two dates
=DAYS(end_date,start_date)
YEARFRAC—calculates the fraction of a year between two dates
=YEARFRAC(start_date,end_date)
Excel’s Date & Time category includes a variety of date and time functions:
The DAYS function calculates the number of days between two dates where the most recent date is entered in the end_date argument and the older date is entered in the start_date argument.
The YEARFRAC function calculates the fraction of a year between two dates based on the number of whole days using the start_date and end_date arguments.
Additional Date & Time functions are discussed on the next slide.
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Use Date Functions
Excel Time & Date functions:
DAY—displays the day (1–31)
=DAY(serial_number)
MONTH—displays the month (1–12)
=MONTH(serial_number)
YEAR—displays the year (2018)
=YEAR(serial_number)
Additional Date & Time functions:
The DAY function displays the day (1–31) within a given date.
The MONTH function displays the month (1–12) for a specific date.
The YEAR function displays the year for a specific date.
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7. Objective 2: Create a Nested Logical Function
In this section, the skills include:
Create a Nested IF Function
Use the AND Function
Nest an AND Function
Nest an OR or NOT Function
Skills:  Create a Nested IF Function  Use the AND Function  Nest an AND Function  Nest an OR or NOT Function
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8. Create a Nested Logical Function
A nested function is a function that is embedded within an argument of another function. In an earlier chapter, you learned about the IF logical function, which enables you to test two outcomes for a situation. What happens if there are three or more outcomes? The example in the text concerns the payment of a bonus based on employees’ time with a company. Although there are three dates that determine the percent of the bonus, we only have to test two. Do you know why?
The figure on the left shows the worksheet, and the figure on the right shows a flowchart picturing the logic necessary to make the correct determination. Notice that there are two IF functions, which are nested. Be sure you understand the structure of the flowchart.
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9. Create a Nested Logical Function
=IF(C7<C$2,D7*D$2,IF(C7<=C$3,D7*D$3,D7*D$4))
We see the same flowchart as on the previous slide, but it now contains the cell references. The nested IF statement is shown on the right. As you can see, one IF function is nested within the other IF function. You can directly enter this line in the Formula Bar or use the Function Arguments dialog box to construct it.
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10. Create a Nested Logical Function
Nesting AND, OR, or NOT functions
AND—evaluates to TRUE if all conditions are true
=AND(logical1,logical2, logical3,…)
OR—evaluates to TRUE if any of the conditions are true
=OR(logical1,logical2, logical3,…)
NOT—reverses the truth of a logical test
=NOT(logical)
Excel provides three additional functions to help in the construction of complex conditions.
These are the:
The AND function, which accepts two or more logical tests and displays TRUE if all conditions are true or FALSE if any one of the conditions is false.
The OR function evaluates to TRUE if any of the conditions are true and returns FALSE only if all conditions are false.
The NOT function evaluates only one logical test and reverses the truth of the logical test.
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11. Create a Nested Logical Function
AND function
This slide shows the AND function is used in column E. Adams and Laing are the only managers who earn less than $70,000. Although Crandell is a manager, she earns more than $70,000. Although Lenz earns only $49,750, he is not a manager. Study the last three columns so that you understand the results for each worker.
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12. Objective 3: Use Advanced Lookup Functions
In this section, the skills include:
Create a Lookup Field
Use the INDEX Function
Use the MATCH Function
Skills:  Create a Lookup Field  Use the INDEX Function  Use the MATCH Function
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13. Use Advanced Lookup Functions
Additional lookup functions:
INDEX—returns a value at the intersection of a specified row and column
=INDEX(array,row_num,[column_num])
In an earlier chapter, you learned how to use the VLOOKUP and HLOOKUP functions to look up a value, compare it to a lookup table, and then return a result from the lookup table. Two other lookup functions that are helpful are INDEX and MATCH.
The INDEX function returns a value at the intersection of a specified row and column of an array.
=INDEX(array,row_num,[column_num])
The figure shows that the INDEX finds the intersection of the third row and second column in the array of names and sales. In this case, cell B4 is at that intersection within the range. The INDEX function then returns the data contained in that cell, which is $8,454.
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14. Use Advanced Lookup Functions
Additional lookup functions:
MATCH—searches through a range for a specific value and returns the relative position
=MATCH(lookup_value,lookup_array,[match_type])
The MATCH function searches through a range for a specific value and returns the relative position of that value within the range.
=MATCH(lookup_value,lookup_array,[match_type])
The figure shows that the MATCH function in cell B8 looks up the value stored in cell B7 ($8,454), compares it to the range B2:B5, and then finds an exact match on the third row of that range. Therefore, the MATCH function displays 3.
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15. Objective 4: Apply Advanced Filtering
In this section, the skills include:
Create Criteria and Output Ranges
Apply an Advanced Filter
Skills:  Create Criteria and Output Ranges  Apply an Advanced Filter
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16. Apply Advanced Filtering
Original dataset
Criteria
Data becomes more useful in decision making when you can filter the records into a subset of data that meets specific conditions. A criteria range is a group of two or more adjacent cells that specifies the conditions used to control the results of a filter. A criteria range must contain at least two rows and one column, where the first row contains the column labels as they appear in the dataset, and the second row contains the conditions (values) used to filter the dataset.
For example, a manager might want to identify account reps who earn more than $30,000 in Chicago. The slide shows the original dataset, criteria range, and copy of records that meet these three conditions. Note: Unlike your previous work with filters, the original dataset is still visible and a copy of only those records that meet these conditions are copied to another location.
Filtered and copied results
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17. Apply Advanced Filtering
Criteria
Notice an additional row has been added to the criteria and the results have increased. The third row created another filter for account reps who live in Atlanta, with no salary specified. The results of both queries use the OR condition, and that is why there are more results.
Filtered and copied results
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18. Apply Advanced Filtering
New location $A$26:$E$26
List range including headings
To apply the advanced filter, you:
Click a cell in the data table.
On the Data tab in the Sort & Filter group, click Advanced to display the Advanced Filter dialog box.
Click the desired action: Filter the list, in-place, or Copy to another location.
Ensure the List range displays the range containing the original dataset, including the column headings.
Enter the criteria range, including the criteria labels, in the Criteria range box.
Specify the Copy to range if you selected Copy to another location. Enter only the starting row.
Click OK.
Note: To perform the advanced filter for the OR condition, you must select all three rows of the criteria range: the column labels, the row containing the criteria for Chicago account reps earning more than $30,000, and the row containing criteria for Atlanta account reps.
Criteria range including labels
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19. Objective 5: Manipulate Data with Database Functions
In this section, the skills include:
Use the DSUM Function
Use the DAVERAGE Function
Use the DMIN Function
Use the DMAX Function
Use the DCOUNT Function
Skills:  Use the DSUM Function  Use the DAVERAGE Function  Use the DMIN Function  Use the DMAX Function  Use the DCOUNT Function
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20. Manipulate Data with Database Functions
Excel Database function arguments:
Database—the entire dataset
Field—the column that contains the values operated on by the function
Criteria—defines the conditions to be met by the function
Database functions analyze data for selected records in a dataset and they have three arguments: database, field, and criteria.
• The database argument is the entire dataset, including column labels and all data, on which the function operates.
• The field argument is the column that contains the values operated on by the function. This can be the name of the column in quotation marks or the column number.
• The criteria argument defines the conditions to be met by the function. This range must contain at least one column label and a cell below the label that specifies the condition.
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21. Manipulate Data with Database Functions
Excel Database functions:
DSUM—adds the values that match specified conditions
=DSUM(database,field,criteria)
DAVERAGE—determines the average of values that match specified conditions
=DAVERAGE(database,field,criteria)
DMAX—identifies the highest value that match specified conditions
=DMAX(database,field,criteria)
Excel database functions are:
The DSUM function adds the values in a column that match conditions specified in a criteria range.
The DAVERAGE function determines the arithmetic mean, or average, of values in a column that match conditions specified in a criteria range.
The DMAX function identifies the highest value in a column that matches specified conditions in a criteria range.
Additional database functions are discussed on the next slide.
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22. Manipulate Data with Database Functions
Excel Database functions:
DMIN—identifies the lowest value that match specified conditions
=DMIN(database,field,criteria)
DCOUNT—counts the cells that contain numbers that match specified conditions
=DCOUNT(database,field,criteria)
Excel database functions are:
The DMIN function identifies the lowest value in a column that matches specified conditions in a criteria range.
The DCOUNT function counts the cells that contain numbers in a column that match specified conditions in a criteria range. Note: DCOUNT excludes missing values.
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23. Manipulate Data with Database Functions
DSUM function
This slide shows the results of applying the various database functions. It specifically shows the DSUM function, but all the other functions—AVERAGE, MAX, MIN, AND COUNT—have the same arguments: (A6:E19,E6,A22:E23).
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24. Objective 6: Use Financial Functions
In this section, the skills include:
Use the PV Function
Use the FV Function
Use the NPV Function
Use the NPER Function
Use the RATE Function
Skills:  Use the PV Function  Use the FV Function  Use the NPV Function  Use the NPER Function  Use the RATE Function
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25. Use Financial Functions
Excel financial functions:
PV—calculates the current value of an investment with a fixed rate, number of payments, and payments
=PV(rate,nper,pmt,[fv],[type])
FV—calculates the future value of an investment, given a fixed interest rate, term, and payments
=FV(rate,nper,pmt,[pv],[type])
NPV—calculates the net present value of an investment, given a fixed rate and future payments that may be identical or different
=NPV(rate,value1,value2,)
Excel has several financial functions:
The PV (Present Value) function calculates the total present (current) value of an investment with a fixed rate, specified number of payment periods, and a series of identical payments that will be made in the future.
The FV (Future Values) function calculates the future value of an investment, given a fixed interest rate, term, and identical periodic payments.
The NPV (Net Present Value) function calculates the net present value of an investment, given a fixed rate (rate of return) and future payments that may be identical or different.
Additional financial functions are discussed on another slide.
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26. Use Financial Functions
This slide shows specific examples of how the present value (PV), future value (FV), and net present value (NPV) functions have been applied in a worksheet.
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27. Use Financial Functions
Excel financial functions:
NPER—calculates the number of payments for an investment or loan given a fixed interest rate, periodic payment, and present value
=NPER(rate,pmt,pv,[fv],[type])
RATE—calculates the periodic rate for an investment or loan given the number of payment periods, payments, and present value
=RATE(nper,pmt,pv,[fv],[type])
Excel has several financial functions:
The NPER (Number of PERiods) function calculates the number of payment periods for an investment or loan given a fixed interest rate, periodic payment, and present value.
The RATE function calculates the periodic rate for an investment or loan given the number of payment periods, a fixed periodic payment, and present value.
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28. Use Financial Functions
This slide shows specific examples of how the number of periods (NPER) and rate (RATE functions) have been applied in a worksheet.
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29. Objective 7: Create a Loan Amortization Table
In this section, the skills include:
Enter Formulas in the Amortization Table
Use the IPMT Function
Use the PPMT Function
Use the CUMIPMT Function
Use the CUMPRINC Function
Skills:  Enter Formulas in the Amortization Table  Use the IPMT Function  Use the PPMT Function  Use the CUMIPMT Function  Use the CUMPRINC Function
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30. Create a Loan Amortization Table
The financial functions that were discussed in the previous objective, yield a single result. Suppose you want to create a payment schedule that shows the interest per payment period, principal repayment for each payment, and remaining balance after each payment is made. This is called a loan amortization table, and a partial table is shown in the slide. Because this example is for a car loan over four years or 48 monthly payments, the complete schedule cannot be viewed in its entirety.
Let’s look at the financial functions that are needed to generate this amortization table.
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31. Create a Loan Amortization Table
Additional financial functions:
IPMT—calculates the periodic interest for payment period on a loan or an investment given a fixed interest rate, term, and payments
=IPMT(rate,per,nper,pv,[fv],[type])
PPMT—calculates the principal payment for payment period on a loan or an investment given a fixed interest rate, term, and payments
=PPMT(rate,per,nper,pv,[fv],[type])
Additional Excel financial functions:
The IPMT function calculates the periodic interest for a specified payment period on a loan or an investment given a fixed interest rate, specified term, and identical periodic payments.
The PPMT function calculates the principal payment for a specified payment period on a loan or an investment given a fixed interest rate, specified term, and identical periodic payments.
The arguments for these two functions are:
The rate argument is the periodic interest rate. If the APR is 6% and the payments are made monthly, then the rate is 6%/12 or 0.5%.
The per argument is the specific payment or investment period to use to calculate the interest where the first payment period is 1.
The nper argument represents the total number of payment or investment periods. With a four-year loan consisting of monthly payments, the number of payment periods is 48.
The pv argument represents the present value of the loan or investment.
The optional fv argument represents the future value of the loan or investment. If you omit this argument, Excel defaults to 0.
The optional type argument represents the timing of the payments. Enter 0 if the payments are made at the end of the period or enter 1 if the payments are made at the beginning.
Additional financial functions are discussed on the next slide.
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32. Create a Loan Amortization Table
Additional financial functions:
CUMIPMT—calculates the cumulative interest through a specified payment period
=CUMIPMT(rate,nper,pv,start_period,end_period,type)
CUMPRINC—calculates the cumulative principal through a specified payment period
=CUMPRINC(rate,nper,pv,start_period,end_period,type)
Additional Excel financial functions:
The CUMIPMT function calculates the cumulative interest through a specified payment period.
The CUMPRINC function calculates the cumulative principal through a specified payment period.
The only two new arguments are the start_period argument, which specifies the first period you want to start accumulating the interest, and the end_period argument, which specifies the last payment period you want to include.
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33. Create a Loan Amortization Table
The amortization table is shown once again so you can see how the various functions were applied.
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Summary
Additional Excel functions:
Date, logical, and lookup:
Date, DAY, MONTH, and YEAR
IF, AND, OR, and NOT
INDEX and MATCH
Database:
DSUM, DAVERAGE, DMIN & DMAX, and DCOUNT
Financial:
PV, FV, NPV, NPER, RATE, IPMT, PPMT, CUMIPMT, and CUMPRINC
In the chapter, we explored the application of additional Excel Functions in three basic areas:
Date, logical, and lookup related functions, which enabled us to parse date information, form complex conditional statements, and add some lookup features.
Date, DAY, MONTH, and YEAR
IF, AND, OR, and NOT
INDEX and MATCH
Database related functions, which enabled us to perform calculations on cell ranges by specifying criteria
DSUM, DAVERAGE, DMIN & DMAX, and DCOUNT
Financial related functions, which hopefully gave us some insight into the mysteries of loans and how they are determined.
PV, FV, NPV, NPER, RATE, IPMT, PPMT, CUMIPMT, and CUMPRINC
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Questions ?
It is important to understand how to effectively use these additional Excel functions. Are there any questions?
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36. Copyright
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