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Chapter Profile
What appears in the cell is the result.
What appears in the formula bar is the value, which is a formula in this case.
The elements of a formula are:
References: A cell or a range of cells that you want to use in your calculation.
Operators: Symbols (+, -, *, /, ^, $, %, etc.) that specify the calculations to be performed.
Constants: Numbers or text values that do not change.
ORDER OF OPERATION
When performing calculations using a formula, Excel follows certain rules of precedence:
Excel calculates expressions within parentheses ‘(‘ , ’)’ first.
Excel calculates multiplication and division before addition and subtraction.
Excel calculates consecutive operators with the same level of precedence from left to right.
For example, the formula = 10 + 10 * 2 gives a result of 30 as Excel multiplies 10 by 2 and then
adds 10.
However, the formula =(10 + 10)*2 produces a result of 40. This is because Excel calculates the
expression (10 + 10) within the parentheses first. It then multiplies by 2.
If you are unsure of the order in which Excel calculates, use parentheses even if the parentheses
aren’t necessary. Parentheses also make your formulas easier to read.
DIFFERENT WAYS TO ENTER FORMULAS
There are mainly two ways to enter a formula in a worksheet:
Typing the formula directly in the Cell: In this way, formula is directly typed in the cell after
typing an equal to sign. After entering the formula in the cell, press the Enter key. When the
Enter key is pressed, result of the formula gets appear in the cell:
Formula in cell Output
Typing the formula in the Formula bar: In this way, we can type the formula in Formula bar
after selecting the cell as follows:
After entering the formula, when we press the Enter key from the keyboard. The result will
appear.
Formula in Formula bar
Formulas and Functions 43

