Introduction to Financial Functions

At the conclusion of this section you will be able to:

  • Review financial functions for loans and investments
  • Explain the PMT function
  • Define the concepts and definitions associated with loans
  • Give examples of how functions can be used to manage personal finances

The cost of a loan to the borrower is largely based on three factors: Principal, interest, and time are required to repay the loan. APR means annual interest rate on a loan and it is generally expressed as a percentage.

  1. Read and do pages EX 187 to EX 195–WATCH THIS VIDEO TO HELP YOU

Getting Started with Excel Charts

At the conclusion of this section you will be able to:

  • Demonstrate how to select a data source
  • Review chart types and how to select them
  • Show how to insert a pie chart with the Quick Analysis tool
  • Demonstrate how to move a chart to a different worksheet
  • Show how to move and resize charts

Charts, also referred to in Excel as graphs, provide visual representations of the workbook data. Review Figure 4-6 to visualize the look of a chart and the kinds of data that might be summarized by a chart.

What is an embedded chart? What are the advantages and disadvantages of the embedded chart? By default, a chart is inserted as an embedded chart, which means the chart is placed in a worksheet next to its data source. The advantage of an embedded chart is that you can display the chart alongside any text or figures that can explain the chart’s meaning and purpose. A disadvantage is that an embedded chart covers worksheet cells, which might contain data and formulas.

  1. Read and do pages EX 195 to EX 201–WATCH THIS VIDEO TO HELP YOU

Working with Chart Elements

At the conclusion of this section you will be able to:

  • Explain how to choose a chart style
  • Demonstrate how to format a chart legend
  • Show how to format data labels
  • Review how to set pie slice colors
  • Describe how to format the chart area

Pie charts are very useful for comparing values to each other in a data series. Pie charts have five elements that are common to most charts. You can select and format any chart element individually or you can apply a built-in style or chart layout to format all of these elements at once.

In pie charts a common element is a data label, which is text associated with a data value and is added to the slices. The data labels are placed where they best fit in relation to the pie slices.

Exploded pie charts are useful when you want to emphasize one category. Although you can explode more than one slice, the resulting pie chart is rarely effective.

What is a chart style? A chart style is similar to a cell style or a table style in that it formats several chart elements at one time. You can change the color and appearance of the slices by selecting a different chart style from the Chart Styles gallery on the Chart Tools Design tab.

  1. Read and do pages EX 201 to EX 208–WATCH THIS VIDEO TO HELP YOU

Performing What-If Analyses with Charts

At the conclusion of this section you will be able to:

  • Explain how charts can be a powerful tool for what-if analysis
  • Describe how data can be limited using the process of filtering
  1. Read and do pages EX 208 to EX 209–WATCH THIS VIDEO TO HELP YOU

Creating a Column Chart

At the conclusion of this section you will be able to:

  • Demonstrate how to create a column chart
  • Review the column chart subtypes
  • Explain how to create a clustered column chart
  • Show how to move a chart to a different worksheet
  • Describe how to change and format a chart title

Be sure you understand when it is appropriate to use a bar or column chart. A column chart displays values in different categories as columns; the height of each column is based on its value. Related to the column chart is the bar chart, which is a column chart turned on its side, so each bar length is based on its value.

Column and bar charts are superior to pie charts when the number of categories is large or the categories are close in value. It is easier to compare height or length than area.

If you decide the data in a column chart would be more effective presented as a line chart, what would you do? After creating a chart, you can easily switch the chart to a different chart type without having to recreate the chart from scratch. You can change its chart type rather than creating a new chart. Clicking the Change Chart Type button in the Type group on the CHART TOOLS DESIGN tab opens a dialog box similar to the Insert Chart dialog box, from which you can select a new chart type.

  1. Read and do pages EX 210 to EX  217–WATCH THIS VIDEO TO HELP YOU

Creating a Line Chart

At the end of the section you will be able to:

  • Demonstrate how to create a line chart

Be sure you understand when it is appropriate to use a line chart. A line chart compares values from several categories with a sequential order, such as dates and times that occur at evenly spaced intervals. The values are indicated by the height of the line.

What is a line chart? A line chart compares values from several categories with a sequential order, such as dates and times that occur at evenly spaced intervals. The values are indicated by the height of the line.

  1. Read and do pages EX 220 to EX 222–WATCH THIS VIDEO TO HELP YOU