Chapter 7

Using Functions in Excel


check Understanding the difference between functions and formulas

check Tracking down the right function for the job

check Identifying the functions you need for financial modeling

check Considering more advanced functions

The power of Microsoft Excel lies in its ability to do math for you. (Shh! Don’t tell your high school algebra teacher!) Of course, in order for Excel to work its magic, you need to be able to tell it what you need. And you do that by using formulas and functions. So, actually, you’re not totally off the hook when it comes to knowing math — you have to understand math in order to know which formula or function to use.

In this chapter, I start by telling you the difference between a formula and a function. Then I explain how to find the function you need, when you’re not quite sure what it’s called. Finally, as a financial modeler, you’ll be expected to have a firm grasp on the most commonly used functions in Excel, at the very least; this chapter covers the functions that are absolutely critical for you to know.

Identifying the Difference ...

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