Useful Excel functions

Data|Table function

September 16, 2003

There are two basic types of data tables: one-way and two-way table. In a one-way table, you can change value of one input variable, and in a two-way table, you can change values of two input variables. In both cases, you obtain values of output variables associated with different values of input variables. Example: One-way data table Given: Suppose you know the loan amount, interest rate, and number of periods in years. They are shown in Figure 1. Figure 1 Example of a One-Way Data Table A 1 2 3 4 5 B C Loan amount interest rate number of years monthly payment total interest paid D 30,000 10% 5 637 8245

Base result: Using these values in D1-D3, you can calculate in D4 the monthly payment, using = PMT (D2/12, D3*12, -D1). in D5 total interest paid, using = - Cumipmt (D2/12, D3*12, D1, 1, D3*12, 0)

Task: You want to know the monthly payment and total interest paid at several interest rates. Solution: Use data table function Inputting: The data table is outlined in bold (covering a square from B10:D17). Input in column B alternative interest rates. Excel will use these interest rates in lieu of the benchmark interest rate in cell D2. Input in cell C10 the formula to calculate the payment, i.e., (=D4). Input in cell D10 the formula to calculate the total interest paid, i.e., (=D5).

Creating data table: Select the entire table and choose Data|Table.

A window then appears asking for the row and column input cells. We change the value of only one input variable -- interest rates, and they are in the first column. So, we leave the row input cell blank, and input D2 as the column input cell.

This instructs Excel to use each element in the first column in place of the value in cell D2 and return the corresponding output. Click OK. You will see the following data table (Figure 2). Figure 2: Example of a one-way data table A B C D 7 A. One-way data table 8 monthly total interest 9 payment paid 10 637 8245 11 6.0% 580 4799 12 6.5% 587 5219 13 7.0% 594 5642 14 interest 7.5% 601 6068 15 rate 8.0% 608 6498 16 8.5% 615 6930 17 9.0% 623 7365 Example: Two-way data table Given: Suppose you know the loan amount, interest rate, and number of periods in years. They are shown in Figure 1. Base result: Using these values in D1-D3, you can calculate in cell D4 the monthly payment, using = PMT (D2/12, D3*12, -D1).

Task: You want to know the monthly payment for several different combinations of total mortgage periods and interest rate. Solution: Use data table function Inputting: The data table is outlined in bold (covering a square from B21:F28). Input in column B alternative interest rates. Excel will use these interest rates in lieu of the benchmark interest rate in cell D2. Input in row 21 alternative time periods in years. Excel will use these years in lieu of the benchmark time periods in cell D3.

Input in cell B21 the formula to calculate the payment, i.e., (=D4).

Creating data table: Select the entire table and choose Data|Table. A window then appears asking for the row and column input cells. We change the value of two input variable: time periods and interest rates. Time periods are given in row 21, so input D3 as the row input cell. Interest rates are given in column 1, so input D2 as the column input cell. Excel then uses each element in column B and row 21 in place of the values in cell D3 and D2 and calculates the corresponding output. Click OK. You will see the following data table (Figure 3). Figure 3 Example of a Two-Way Data Table A B C D 19 B. Two-way data table 20 Number of years 21 637 3 4 22 6.0% 913 705 23 6.5% 919 711 24 interest 7.0% 926 718 25 rate 7.5% 933 725 26 8.0% 940 732 27 8.5% 947 739 28 9.0% 954 747 29 E F

5 580 587 594 601 608 615 623

6 497 504 511 519 526 533 541