ECO118
Introductio
Working wit
Data are en
by using fu
called cell. Y
letter A,B,C
be entered
cell A4. Afte
press “En
rectangle
example to
numbers a
and also ref
sums numb
and B3. If y
automatical
with B2 or
Excel are +
division, ^ p
It is conven
copy formul
(Ctrl-C,Ctrl-
cursor when
cell B4 to a
two cells ab
uses absolu
example, fo
sums cells
$ before row
or entire ad
example, w
column E, o
on to MS Exc
th cells and e
ntered directly
unctions. Ea
You can iden
C… and by its
starting wi
er you enter f
ter” key t
moves do
cell A5. You
as function
ferences to c
bers entered
you change v
lly updates c
B3. Most c
+ sum, - su
power (e.g. =
nient to copy
a from cell B
-V) and you c
n selected c
a new cell C4
bove (now th
ute and relat
ormula enter
D2 and D3
w or column
dress - abso
when copie
one argumen
cel
entering infor
y into cells w
ch of the ite
ntify each cel
s row 1,2,3…
th “=”, see
formula and
the cursor
own – in
u can enter
arguments
cells. Here fo
into two ce
value of cell B
cells, which c
common use
btraction, *
2^8).
y formulas to
B4 to C4 you
can also drag
cell B4 to C4
4, it will still
hey are C2
tive referenc
red into sell
3. When us
, it fixes this
olute address
ed formula
nt got fixed to
rmation
with keyboard
ems in table
ls by its colu
… Formulas c
ormula in cell
ells above –
B2 or B3, Ex
ontain formu
ed operators
multiplication
o other cells.
can copy/pa
g and drop w
4. When cop
refer to sum
and C3). Ex
ces to cells.
l “D4” =D2+
sing dollar s
s row or colu
s of the cell.
=D2+$D$3
o cell D3 and
1
Tutorial 3
d or
e is
umn
can
B4,
B2
xcel
ulas
s in
n, /
To
aste
with
pied
m of
xcel
For
+D3
sign
umn
For
to
did
not
you
argu
You
addr
Wor
Exce
conv
into
by s
intui
task
ente
of 10
cell
Form
appe
cell(
Com
argu
valu
etc.
Ano
argu
prev
sum
for t
case
to D
Math
refer to cell
have to repe
ument values
can also pre
ress to get th
rking with fun
el has se
venience of u
cell by typin
selecting fu
tive use inte
k you are doi
er function. F
0 that is √10
=SQRT(10
mulas/Math&
ears, where
(s) where
mmonly use
uments,...), A
e, ROUND(…
ther examp
uments given
vious page).
m cells C2 an
his function
e of formula i
D3 and syntax
Uploaded M
http://www.
hs for Econ
E3. Copyin
eat the same
s (useful whe
ess F4 repea
hese $ signs
nctions
et of pred
user. These
g = and keyi
nction on t
erface, which
ng. First sele
or example,
0. Select cal
0) or sele
&Trig then se
e can enter
argument
ed function
AVERAGE(…
…,number o
le is functio
n in bracket
Here, =SUM
nd C3. Anoth
is to select a
in cell D5, it
x is =SUM(D
March 30, 201
.slideshare.ne
nomics and
g cells is us
e formula wi
en you draw t
atedly, when
.
efined func
can be enter
ing in functio
the ribbon.
h changes ac
ect the cell y
how to find s
l and enter d
ect on th
elect SQRT.
arguments
values are
s are SU
…), ABS(…
of digits to ro
on SUM, wh
ts (refer to
M(C2,C3) al
her way to w
an area of th
is the area fr
D2:D3).
4 Martins Pri
et/econexper
Business
seful when
th different
the graph).
you select
ctions for
red directly
on name or
Ribbon is
ccording to
you want to
square root
directly into
he ribbon
Dialog box
or select
e entered.
UM(function
) absolute
ound up to)
hich sums
picture on
lows us to
write syntax
he table. In
rom cell D2
iede
rt
NPV
Ca
valu
rate
valu
PMT
inter
FV(
perio
PV(
a se
inter
num
paym
pv
fv
Type
Prac
1.
2.
3.
4.
ECO118
Drawing the
Here you ca
area you wa
chart you w
Financial fu
V( rate, value
lculates the
es) and inco
e1, value2, …
T( interest_r
rest rate and
interest_ra
odic, constan
rate, nper, p
eries of future
rest_rate
mber_paymen
ment
e
ctice of using
Two projects
Years
Project A
Project B
a. Determ
b. If the e
c. Determ
Jing decided
down payme
loan amortiz
For each mo
Calculate tot
What is the p
if Jing wants
e graphs
an find usefu
ant to chart,
want to use.
nctions in Ex
e1, [value2]
net present v
ome (positive
The r
… Paym
rate, numbe
d a constant p
te, number_
nt payments
pmt, fv, type
e payments i
interes
nts numbe
amoun
optiona
future v
optiona
the per
g Excel
s have follow
Now
-1000
-2000
mine NPV of
expected retu
mine IRR of e
d to buy new
ent of 200,00
zation schedu
onth show m
tal sum of m
price Jing wa
s to have 9%
ul section 2.8
then go to I
xcel
, ... )
value of an i
e values).
rate for disco
ments
er_payments
payment sch
_payments,
and a const
e) Returns
s worth now
t rate for the
er of payment
nt of the paym
al. It is the pr
value, or a ca
al variable an
riod. (default
wing cash flow
1
st
year
0
0
each project
urn rate incre
each project.
3 room apar
00 RMB and
ule using two
onthly loan b
onthly intere
ants to sell th
% return on h
8 from the b
Insert/Bar/ a
nvestment b
ount over the
s, pv, fv, Typ
hedule.
payment, p
ant interest r
the present
investment.
ts for the ann
ment made e
resent value
ash balance
nd indicates
), 1 Payment
ws
2
nd
year
1000
1000
t if required r
ease to 12%,
rtment in are
the rest she
o methods: a
balance, inte
est payments
his apartmen
er capital.
2
book, p92. Se
nd select typ
by using a dis
e length of on
pe ) Function
pv, Type ) R
rate.
value of an i
nuity
each period
of the payme
you want to
when the pa
ts are due at
3
rd
year
1000
0
return rate is
, which proje
ea west of Jin
will borrow f
a. annuity, b.
rest paymen
s, sum of nom
nt after a. 5 y
Math
elect
pe of
scount rate a
ne period
n returns the
Returns the
nvestment. T
ents. If omitt
attain after t
ayments are
t the beginni
4
th
year
-1000
0
6.5%. Which
ect is better n
nji lake, which
from bank at
fixed princip
nt, loan nomi
minal repaym
years, b. 10
hs for Econ
and a series
e payment am
future value
The present
ted, PV assu
the last paym
due: 0 Paym
ng of the per
5
th
year
2000
0
h project will
now ? Why ?
h cost 1,000
the rate 7.5%
pal loan if inte
nal repayme
ments and su
0 years,
nomics and
of future pay
mount for a l
e of an inves
value is the
med to be 0
ment is made
ments are due
riod.
6
th
year
1000
5000
you choos
,000 RMB. S
% for 25 yea
erest calcula
ent and actua
um of total pa
Business
yments (neg
oan based o
stment base
total amount
.
e.
e at the end
r
se ?
She will make
rs. Make mo
ated every mo
al payment.
ayments.
ative
on an
ed on
t that
of
e first
onthly
onth.

Introduction to Excel, basic financial functions

  • 1.
    ECO118 Introductio Working wit Data areen by using fu called cell. Y letter A,B,C be entered cell A4. Afte press “En rectangle example to numbers a and also ref sums numb and B3. If y automatical with B2 or Excel are + division, ^ p It is conven copy formul (Ctrl-C,Ctrl- cursor when cell B4 to a two cells ab uses absolu example, fo sums cells $ before row or entire ad example, w column E, o on to MS Exc th cells and e ntered directly unctions. Ea You can iden C… and by its starting wi er you enter f ter” key t moves do cell A5. You as function ferences to c bers entered you change v lly updates c B3. Most c + sum, - su power (e.g. = nient to copy a from cell B -V) and you c n selected c a new cell C4 bove (now th ute and relat ormula enter D2 and D3 w or column dress - abso when copie one argumen cel entering infor y into cells w ch of the ite ntify each cel s row 1,2,3… th “=”, see formula and the cursor own – in u can enter arguments cells. Here fo into two ce value of cell B cells, which c common use btraction, * 2^8). y formulas to B4 to C4 you can also drag cell B4 to C4 4, it will still hey are C2 tive referenc red into sell 3. When us , it fixes this olute address ed formula nt got fixed to rmation with keyboard ems in table ls by its colu … Formulas c ormula in cell ells above – B2 or B3, Ex ontain formu ed operators multiplication o other cells. can copy/pa g and drop w 4. When cop refer to sum and C3). Ex ces to cells. l “D4” =D2+ sing dollar s s row or colu s of the cell. =D2+$D$3 o cell D3 and 1 Tutorial 3 d or e is umn can B4, B2 xcel ulas s in n, / To aste with pied m of xcel For +D3 sign umn For to did not you argu You addr Wor Exce conv into by s intui task ente of 10 cell Form appe cell( Com argu valu etc. Ano argu prev sum for t case to D Math refer to cell have to repe ument values can also pre ress to get th rking with fun el has se venience of u cell by typin selecting fu tive use inte k you are doi er function. F 0 that is √10 =SQRT(10 mulas/Math& ears, where (s) where mmonly use uments,...), A e, ROUND(… ther examp uments given vious page). m cells C2 an his function e of formula i D3 and syntax Uploaded M http://www. hs for Econ E3. Copyin eat the same s (useful whe ess F4 repea hese $ signs nctions et of pred user. These g = and keyi nction on t erface, which ng. First sele or example, 0. Select cal 0) or sele &Trig then se e can enter argument ed function AVERAGE(… …,number o le is functio n in bracket Here, =SUM nd C3. Anoth is to select a in cell D5, it x is =SUM(D March 30, 201 .slideshare.ne nomics and g cells is us e formula wi en you draw t atedly, when . efined func can be enter ing in functio the ribbon. h changes ac ect the cell y how to find s l and enter d ect on th elect SQRT. arguments values are s are SU …), ABS(… of digits to ro on SUM, wh ts (refer to M(C2,C3) al her way to w an area of th is the area fr D2:D3). 4 Martins Pri et/econexper Business seful when th different the graph). you select ctions for red directly on name or Ribbon is ccording to you want to square root directly into he ribbon Dialog box or select e entered. UM(function ) absolute ound up to) hich sums picture on lows us to write syntax he table. In rom cell D2 iede rt
  • 2.
    NPV Ca valu rate valu PMT inter FV( perio PV( a se inter num paym pv fv Type Prac 1. 2. 3. 4. ECO118 Drawing the Hereyou ca area you wa chart you w Financial fu V( rate, value lculates the es) and inco e1, value2, … T( interest_r rest rate and interest_ra odic, constan rate, nper, p eries of future rest_rate mber_paymen ment e ctice of using Two projects Years Project A Project B a. Determ b. If the e c. Determ Jing decided down payme loan amortiz For each mo Calculate tot What is the p if Jing wants e graphs an find usefu ant to chart, want to use. nctions in Ex e1, [value2] net present v ome (positive The r … Paym rate, numbe d a constant p te, number_ nt payments pmt, fv, type e payments i interes nts numbe amoun optiona future v optiona the per g Excel s have follow Now -1000 -2000 mine NPV of expected retu mine IRR of e d to buy new ent of 200,00 zation schedu onth show m tal sum of m price Jing wa s to have 9% ul section 2.8 then go to I xcel , ... ) value of an i e values). rate for disco ments er_payments payment sch _payments, and a const e) Returns s worth now t rate for the er of payment nt of the paym al. It is the pr value, or a ca al variable an riod. (default wing cash flow 1 st year 0 0 each project urn rate incre each project. 3 room apar 00 RMB and ule using two onthly loan b onthly intere ants to sell th % return on h 8 from the b Insert/Bar/ a nvestment b ount over the s, pv, fv, Typ hedule. payment, p ant interest r the present investment. ts for the ann ment made e resent value ash balance nd indicates ), 1 Payment ws 2 nd year 1000 1000 t if required r ease to 12%, rtment in are the rest she o methods: a balance, inte est payments his apartmen er capital. 2 book, p92. Se nd select typ by using a dis e length of on pe ) Function pv, Type ) R rate. value of an i nuity each period of the payme you want to when the pa ts are due at 3 rd year 1000 0 return rate is , which proje ea west of Jin will borrow f a. annuity, b. rest paymen s, sum of nom nt after a. 5 y Math elect pe of scount rate a ne period n returns the Returns the nvestment. T ents. If omitt attain after t ayments are t the beginni 4 th year -1000 0 6.5%. Which ect is better n nji lake, which from bank at fixed princip nt, loan nomi minal repaym years, b. 10 hs for Econ and a series e payment am future value The present ted, PV assu the last paym due: 0 Paym ng of the per 5 th year 2000 0 h project will now ? Why ? h cost 1,000 the rate 7.5% pal loan if inte nal repayme ments and su 0 years, nomics and of future pay mount for a l e of an inves value is the med to be 0 ment is made ments are due riod. 6 th year 1000 5000 you choos ,000 RMB. S % for 25 yea erest calcula ent and actua um of total pa Business yments (neg oan based o stment base total amount . e. e at the end r se ? She will make rs. Make mo ated every mo al payment. ayments. ative on an ed on t that of e first onthly onth.