1. =SUM(A14,A8)
2. =C8+ 15
3. PMT function {PMT(D4D12,E4,-C4)}
What will each of the above formulas do
please see if I have the correct answer using excel or another spreadsheet document.
1. Is the sum between the two blocks listed the more blocks the more #'s to the equation, it helps when the #'s change and the total has to be adjusted, the program will do it automatically for you( The same reason for all equations)
2. This would be the block in question plus 15
3. Calculates the payment for a loan based on constant payments and a constant interest rate. PMT(rate,nper,pv,fv,type)
Rate is the interest rate for the loan.
Nper is the total number of payments for the loan.
Pv is the present value, or the total amount that a series of future payments is worth now; also known as the principal.
Fv is the future value, or a cash balance you want to attain after the last payment is made. If fv is omitted, it is assumed to be 0 (zero), that is, the future value of a loan is 0.
Type is the number 0 (zero) or 1 and indicates when payments are due
To understand what each formula does, let's break them down:
1. =SUM(A14,A8)
This formula calculates the sum of the values in cell A14 and A8. In Excel or another spreadsheet document, you can input values in these cells and use the SUM function to get the total. For example, if A14 contains 5 and A8 contains 10, the formula will result in 15.
2. =C8 + 15
This formula adds the value in cell C8 with 15. Similarly, input values in C8 and you will get the sum by using this formula. For instance, if C8 contains 20, the result will be 35.
3. =PMT(D4, D12, -C4)
This formula uses the PMT function, which is commonly used for calculating loan payments. The parameters in the function represent the following:
- D4 is the interest rate for the loan.
- D12 is the total number of payments for the loan.
- -C4 is the present value (or principal) of the loan.
Using these values, the PMT function will calculate the periodic payment amount required to pay off the loan based on the given interest rate, number of payments, and loan principal. For example, if D4 is 5%, D12 is 12 (for a 1-year loan), and C4 is $1000, the formula will calculate the monthly payment amount.