1. CONSTRUCTING BASIC FORMULAS AND USING FUNCTIONS Microsoft Excel

2. VALUABLE FEATURES Excel has the ability to produce mathematical outputs through: Excel has the ability to produce mathematical outputs through: Basic and complex mathematical computations Basic and complex mathematical computations Statistical functions (which can be applied to a range of cells) Statistical functions (which can be applied to a range of cells)

3. COMMONLY USED MATHEMATICAL OPERATORS OperatorPrecedenceDescription ^1 st Exponentiate * 2nd Multiply / 2nd Divide + 3rd Add - 3rd Subtract ()Used to control the order of mathematical operations

4. TYPICAL EXCEL FORMULAS FormulaAction =275+374Adds the values 245 and 374 =f4+f5Add the values in cells f4 and f5. =C3+b3-d5Adds the values in cells c3 and b3 and subtracts the value in cell d5. (a3+b3)/c9Adds a3 and b3 and divides by c9’s value. =F5*1.02Multiplies the contents in f5 by 1.02. =f5*c5Multiplies the content of cell f5 by c10’s contents

5. USING THE SUM FUNCTION RangeDefines C4:C4A single cell B5:B10A range of cells in column B D3:G3A range of cells in row 3 C5:F12A rectangular range of cells in columns c thru f, rows 5 thru 12. In a SUM formula, the cell references can consist of a single cell or a block of cells. Excel refers to these references as a range. In a SUM formula, the cell references can consist of a single cell or a block of cells. Excel refers to these references as a range.

6. AUTOSUM The Autosum functions allows a user to create simple calculations by selecting cells. The cursor must be placed in the cell where the answer will appear.

7. CELL REFERENCES Why Use Cell References? Cell references enable Excel to dynamically produce new outputs when one or more inputs in the referenced cells are changed. Cell references also allow you to trace how outputs are being calculated in a formula. Never use a calculator to determine a mathematical output and type it into the cell location of a worksheet, this eliminates cell-referencing benefits and the ability to trace a formula.

8. RELATIVE REFERENCING When you use cell references in a formula, Excel automatically adjusts the cell references when the formula is pasted into new cell locations

9. THE FORMULA BAR Allows the user to view and edit data or formulas within cells. Allows the user to view and edit data or formulas within cells. To edit, simply use the F2 key or click your mouse in the formula window. To edit, simply use the F2 key or click your mouse in the formula window.

10. BUDGETING TASK A personal budget is a vital tool to use when making financial decisions. A personal budget is a vital tool to use when making financial decisions. Review the terms listed in Table 2.1