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### Understanding Formulas

#### Introduction

A formula calculates values to return a result. On an Excel worksheet, you can create a formula using constant values (such as 147 or \$10.00), operators (shown in the table), references, and functions. An Excel formula always begins with the equal sign (=).

A constant is a number or text value that is not calculated, such as the number 147, the text “Total Profits”, and the date 7/22/2008. On the other hand, an expression is a value that is not a constant. Constants remain the same until you or the system change them. An operator performs a calculation, such as + (plus sign) or - (minus sign). A cell reference is a cell address that returns the value in a cell. For example, A1 (column A and row ...

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