Excel: Formulas and Functions Flashcards

Which formula correctly calculates compound interest where rate is in B1, periods in B2, and principal in B3?

Answer: =B3*(1+B1)^B2

The compound interest formula is Principal × (1 + rate)^periods, represented in Excel as =B3*(1+B1)^B2.

What is the purpose of the CONCATENATE function (or & operator) in Excel?

Answer: Joins multiple text strings into one

CONCATENATE (or the & operator) joins two or more text strings together into a single string.

Which function returns the largest value in a range?

Answer: MAX

MAX returns the maximum (largest) numeric value in a given range.

A VLOOKUP formula has FALSE as its last argument. What does this specify?

Answer: Exact match

FALSE (or 0) as the range_lookup argument in VLOOKUP specifies an exact match, returning an error if no exact value is found.

What does =LEFT("Microsoft", 5) return?

Answer: Micro

LEFT extracts characters from the beginning of a string; LEFT("Microsoft", 5) returns the first 5 characters: 'Micro'.

Which Excel function converts text that represents a number into an actual number?

Answer: VALUE

VALUE converts a text string that looks like a number into a numeric value that can be used in calculations.

What does the AVERAGE function do with empty cells in its range?

Answer: Ignores them entirely

AVERAGE ignores empty cells and only divides the total by the count of cells that contain numeric values.