# Using Formulas and Functions

1 | Page challenge yourself 3.3 Last Updated 4/3/15

challenge yourself 3.3 In this project, you will complete a vehicle-shopping workbook to compare the purchase of several vehicles. After

completing the project, you can make a copy of the file and use it to compare vehicle purchases you are considering

for yourself. Be sure to save your work often!

Skills needed to complete this project:

Naming Ranges of Cells Calculating Averages Finding Data Using the VLOOKUP Function Working with Named Ranges Using the Function Arguments Dialog to Enter Functions Using the Logical Function IF Calculating Loan Payments Using the PMT Function Creating Formulas Referencing Data from Other Worksheets Displaying and Printing Formulas Finding Errors Using Trace Precedents and Trace Dependents Finding Minimum and Maximum Values Using Formula AutoComplete to Enter Functions Updating Named Ranges with the Name Manager Editing and Deleting Names with the Name Manager Checking Formulas for Errors

1. Open the start file EX2013-ChallengeYourself-3-3. The file will be renamed automatically to include your name. Change the project file name if directed to do so by your instructor, and save it.

2. If the workbook opens in Protected View, enable editing so you can make changes to the workbook.

3. The registration fee information in cells B11:C18 on the Assumptions sheet will be used in lookup formulas later in this project. Name the range RegistrationFees to make it easier to use later.

4. Return to the Purchase worksheet.

5. Calculate the average MPG for each vehicle.

a. Enter a formula in cell C11 using the AVERAGE function to calculate the average value of C9:C10. Use only one argument.

b. Copy the formula to the appropriate cells for the other vehicles.

c. Excel will detect a possible error with these formulas. Use the SmartTag to ignore the error. Hint: Use the SmartTag while cells C11:F11 are selected and the error will be ignored for all the selected cells.

6. Calculate the registration fee for each vehicle.

a. Enter a formula in cell C14 to lookup the registration fee for the first vehicle. Use the vehicle type in cell C5 as the Lookup_value argument. Use the RegistrationFees named range as the

Table_array argument. The registration fees are located in column 2 of the data table. Require an

exact match.

b. Copy the formula to the appropriate cells for the other vehicles.

Step 1

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A Skills Approach: Excel 2013 Chapter 3: Using Formulas and Functions

2 | Page challenge yourself 3.3 Last Updated 4/3/15

7. Determine whether or not you will need a loan for each potential purchase.

a. In cell C16, enter a formula using an IF function to determine if you need a loan. Your available cash is located on the Assumptions sheet in cell A3. If the price of the car is less than or equal to your

available cash, display “no”. If the price of the car is more than your available, cash, display “yes”.

Use absolute references where appropriate— you will be copying this formula across the row.

b. Copy the formula to the appropriate cells for the other vehicles.

8. Calculate how much you would need to borrow for each purchase.

a. In cell C17, enter a formula to subtract your available cash from the purchase price: Use absolute references where appropriate— you will be copying this formula across the row.

b. Copy the formula to the appropriate cells for the other vehicles.

9. Calculate the monthly payment amount for each loan.

a. In cell C22, enter a formula using the PMT function to calculate the monthly loan payment for the first vehicle. Use absolute references where appropriate—you will be copying this formula

across the row. Hint: Don’t forget to multiply the number of years by 12 in the Nper argument to reflect the number of monthly payments during

the life of the loan.

b. Edit the formula so the monthly payment appears as a positive number.

c. Copy the formula to the appropriate cells for the other vehicles.

10. Compute the monthly cost of gas.

a. In cell C21, enter a formula to calculate the number of miles you expect to drive each month (Assumptions sheet, cell A5) / the average MPG for the vehicle (Purchase sheet, cell C11) * gas

price per gallon (Assumptions sheet, cell A6).

b. Copy the formula to the appropriate cells for the other vehicles.

c. If cells D21:F21 display an error or a value of 0, display formulas and check for errors.

d. If you still can’t find the error, try displaying the precedent arrows.

Hint: The references to the cells on the Assumptions sheet should use absolute references. If

they do not, the formula will update incorrectly when you copy it across the row.

11. Compute the monthly cost of maintenance.

a. In cell C23, enter a formula to calculate the annual maintenance cost (cell C13) /12.

b. Copy the formula to the appropriate cells for the other vehicles.

12. Compute the monthly cost of insurance.

a. In cell C24, enter a formula to calculate the annual insurance cost (cell C15) / 12.

b. Copy the formula to the appropriate cells for the other vehicles.

13. In cells C25:F25, compute the total the monthly cost for each vehicle.

A Skills Approach: Excel 2013 Chapter 3: Using Formulas and Functions

3 | Page challenge yourself 3.3 Last Updated 4/3/15

14. Determine which vehicles are affordable.

a. In cell C27, enter a formula using the IF function to display “yes” if the total monthly cost (cell C25) is less than or equal to the total monthly amount available for vehicle expenses

(Assumptions sheet, cell A4). Display “no” if the total monthly cost is not less then or equal to

the total monthly amount available.

b. Copy the formula to the appropriate cells for the other vehicles.

c. Display formulas and use the error checking skills learned in this lesson to track down and fix any errors.

15. Complete the Analysis section using formulas with statistical functions. Use named ranges instead of cell references in the formulas.

a. Hint: Select cells B8:F25 and use Excel’s Create from Selection command to create named ranges for each row using the labels at the left side of the range as the names.

b. Hint: Open the Name Manager and review the names Excel created. Notice that any spaces or special characters in the label names are converted to _ characters in the names.

c. Hint: To avoid typos as you create each formula, try using Formula AutoComplete to select the correct range name.

16. Before finishing the project, check the worksheet for errors.

17. Save and close the workbook.

18. Upload and save your project file.

19. Submit project for grading.

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Step 3

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