UNIT-4

INTRODUCTION TO ESSENTIAL TOOLS -II

4.1 SPREADSHEET

A spreadsheet is a computer program that can capture, display and manipulate data

arranged in rows and columns. Spreadsheets are one of the most popular tools available

with personal computers. A spreadsheet is generally designed to hold numerical data and

short text strings.

4.2 CREATING WORKBOOK

Open Excel. Select Blank workbook or press Ctrl+N. Start typing.

4.3 REARRANGING WORKSHEET:

1. Reordering Rows and Columns: You might want to move rows or columns to change

the sequence of your data. This can be done by dragging the row or column headers or

using cut and paste.

2. Sorting Data: Organizing data in ascending or descending order based on specific

columns. This can be useful for arranging information alphabetically or numerically.

3. Filtering Data: Applying filters to display only the data that meets certain criteria, which

can help in focusing on specific subsets of information.

4. Grouping and Ungrouping Data: This involves combining related rows or columns into

groups to make data easier to manage and analyses.

5. Changing Data Layout: This could mean adjusting how data is presented, such as

switching from a vertical to a horizontal layout or reorganizing sections within the sheet.

6. Inserting or Deleting Rows/Columns: Adding new rows or columns or removing

existing ones to accommodate changes in your data structure.

7. Adjusting Cell Sizes: Resizing rows or columns to better fit the content or to improve the

visual layout.

8. Rearranging Sheets: Moving entire sheets within a workbook to change the order or

organization of the sheets.

9. Using Formulas: Rewriting or adjusting formulas to reflect changes in the data structure

or to improve efficiency.
4.4 ORGANIZING DATA:

1. Categorize Data:

o Create Categories: Group related data into categories or sections. Use headers to

label different sections of your data.

o Use Tables: Format your data as a table (using the "Format as Table" feature) to

make it easier to manage and reference.

2. Sort and Filter:

o Sort: Arrange your data based on specific criteria (e.g., alphabetically, by date, by

numerical value).

o Filter: Apply filters to display only the data that meets certain criteria, making it

easier to analyses specific subsets.

3. Use Conditional Formatting:

o Highlight important data points or trends using colour scales, data bars, or icon sets

to make key information stand out.

4. Add Data Validation:

o Ensure data consistency and accuracy by setting up validation rules, such as

dropdown lists or restricted input ranges.

5. Create a Summary Section:

o Include a summary or overview section that provides key metrics or highlights

important data points.

4.5 ORGANIZING GRAPHS (CHARTS):

1. Choose the Right Chart Type:

o Bar/Column Charts: Good for comparing quantities.

o Line Charts: Useful for showing trends over time.

o Pie Charts: Effective for displaying proportions.

o Scatter Plots: Ideal for showing relationships between variables.

2. Place Charts Strategically:

o Location: Position charts near the relevant data or in a dedicated section for charts

to avoid clutter.

o Size: Adjust the size of charts to fit well within the layout without overwhelming

other content.

3. Label Clearly:

o Titles and Labels: Provide clear titles, axis labels, and data labels to ensure the

chart’s purpose and content are easily understood.

o Legends: Include legends if your chart has multiple series or categories, so viewers

can easily identify different data points.

4. Use Consistent Formatting:

o Colours and Styles: Use consistent colours and styles across different charts to

maintain a uniform look and feel.

o Gridlines and Axis: Adjust or remove gridlines and axis labels as needed to

improve readability.
5. Update Data Dynamically:

o Dynamic Ranges: Use dynamic ranges if your data updates frequently, so charts

automatically reflect the latest information.

o Link Data: Ensure charts are linked to the correct data ranges or sources so they

update automatically when data changes.

6. Provide Context:

o Annotations: Add annotations or comments to highlight important insights or

trends in your charts.

o Supporting Text: Include explanatory text or a brief analysis to provide context for

the charts.
4.6 BASIC ARITHMETIC FUNCTIONS

SUM: Adds up a range of numbers.

=SUM(A1:A10)

AVERAGE: Calculates the average of a range of numbers.

=AVERAGE(B1:B10)

MIN: Finds the smallest number in a range

=MIN(C1:C10)

MAX: Finds the largest number in a range.

=MAX(D1:D10)

4.7 STATISTICAL FUNCTIONS

COUNT: Counts the number of cells with numerical values.

=COUNT(E1:E10)

COUNTA: Counts the number of non-empty cells

=COUNTA(F1:F10)

STDEV: Calculates the standard deviation of a range

=STDEV(G1:G10)
4.8 DATA ANALYSIS FUNCTIONS

• SUMIF: Adds the cells specified by a given condition or criteria.

=SUMIF (range, criteria, [sum range])

• COUNTIF: Counts the number of cells that meet a criterion.

=COUNTIF (range, criteria)

• AVERAGEIF: Calculates the average of cells that meet a criterion.

=AVERAGEIF (range, criteria, [average range])

4.9 LEARNING OBJECTIVES OF EXCEL

1. Use the SUM function to calculate totals.

2. Use absolute references to calculate percent of totals.

3. Use the COUNT function to count cell locations with numerical values.

4. Use the AVERAGE function to calculate the arithmetic mean.

5. Use the MAX and MIN functions to find the highest and lowest values in a range of

cells.

6. Learn how to copy and paste formulas without formats applied to a cell location.

7. Learn how to set a multiple level sort sequence for data sets that have duplicate values or

outputs.
4.10 FUTURE VALUE

Future value (FV) is the value of a current asset at a future date based on an assumed

growth rate. Investors and financial planners use it to estimate how much an investment

today will be worth in the future. External factors such as inflation can adversely affect an

asset's future value.

4.11 NET PRESENT VALUE (NPV) FORMULA

Npv, or net present value, is how much an investment is worth throughout its lifetime,

discounted to today's value. The npv formula is often used in investment banking and

accounting to determine if an investment, project, or business will be profitable in the long

run.

What is NPV?

Net Present Value (NPV) is a financial metric used to assess the profitability of an

investment or project. It calculates the difference between the present value of cash

inflows and the present value of cash outflows over a period of time.
Key Concepts

1. Present Value (PV):

o The current worth of a future cash flow, discounted at a specific interest rate.

2. Cash Flows:

NPV considers all cash inflows and outflows associated with the investment. This
includes initial investments, operational costs, revenues, and any salvage value at the end
of the project.

3. Discount Rate:

The discount rate is a critical component, representing the required rate of return or
the opportunity cost of capital. It is used to calculate the present value of future cash
flows.

4.12EQUATED MONTHLY INSTALMENT

An equated monthly installment (EMI) is a fixed payment made by a borrower to a

lender on a specified date of each month. Emi’s are applied to both interest and principal each

month so that over a specified time period, the loan is paid off in full.
4.13 FACTORS AFFECTING YOUR DUE AMOUNT

There are certain factors you need to consider while planning for applying for a loan.

Based upon your financial and repayment capacity, you will be required to calculate equated

monthly installments (EMI). Here are a few factors to consider-

• Term of the Loan

A loan’s tenure may get reduced or extended. Subsequently, there will be an

increase or a decrease in the EMI amount as well. Thus, considering the term of a loan is also an

important factor that may affect your due amount.

• Rate of Interest

The rate of interest is a vital factor that will help to assess the installment amount

owed. You can compare the product and opt for one which has a lower rate of interest so that

your overall repayment stays low.

• Amount of Loan

Choosing the loan amount is another significant factor for determining your EMI.

Based on the loan amount you choose; your equated monthly installment will be calculated

accordingly.

The formula to determine loan EMI amount:

There is a specific formula that Grow uses to compute the EMI amount for a loan.

EMI = [P x R x (1+R) ^N]/ [(1+R) ^ (N-1)], where –

• P is the principal amount

• R is the rate of interest

 • N is the loan tenure

This is the standardized formula used by any online loan calculator. Some variables may be

added based on the type of loan.

4.14 TYPES OF EMI CALCULATOR:

There are numerous types of EMI Calculators that you can use on Groww to calculate

your equated monthly installments for home loans, personal loans, car loans, etc.

Home Loan EMI Calculator:

Home loans usually have a huge loan principal amount and a long tenure. It requires

strategic planning for its repayment.

You can use the Home Loan EMI Calculator of Groww to calculate your EMI. It is a user-

friendly designed calculator that can help you calculate and assess your home loan emis

immediately.

All you need to do is enter your loan amount, loan tenure, and rate of interest and the

results will be calculated instantly.

Car Loan EMI Calculate.:

Buying a car is one of the major investments one can make.

You may require a car loan to fund this substantial investment.

Often, a car loan’s EMI is supposed is to be repaid with due interest within a stipulated

time to the lender.

On failure, your car may be taken away and put up for auction to recover the balance

amount left to be paid. Thus, to calculate a precise EMI amount that you can afford to pay
comfortably, you can use the Car Loan EMI Calculator of Grow. You just need to enter your loan

amount, interest rate, and loan tenure, and you will get the monthly EMI amount instantly.

Personal loan EMI calculater:

Personal loans are mostly taken to serve multiple purposes like medical emergency,

vacation, relocation, wedding, home renovation, etc. Since they are an unsecured loan, they have

a relatively higher interest rate and a shorter tenure. You can use the Personal Loan EMI

Calculator of Groww to assess the loan and EMI amount that you can pay with ease. By entering

your loan amount, rate of interest, and loan tenure, you can calculate your EMI.

Education Loan EMI Calculator:

Affording good education in recent times has been quite a task for parents as its cost has

risen at a rapid pace. To finance this cost, an education loan is one of the best options a parent

can opt for. Such loans can be taken for a student’s education within the country or even

overseas. The loan’s EMI is required to be repaid with interest after a moratorium period. By

entering the loan amount, rate of interest, and loan tenure in the Education Loan EMI Calculator,

you can calculate the sum of the EMI amount which you need to repay.

4.15 SORTING LIST

Show data rows in the order you prefer, including sorts across multiple rows.
4.16 FILTER

To filter data in Excel, you can use the Filter option to focus on the data you want to see:

1. Select a cell within the range of data you want to filter

2. Select the Data tab, then Filter

3. Select the column header arrow

4. Select Text Filters or Number Filters

5. Select a comparison, like Between

6. Enter the filter criteria and select OK

Types of Data Filtering Techniques

1. Basic Filtering Methods. Basic filtering involves simple techniques like range or set

membership.

2. Filtering by Criteria.

3. Filtering by Time Range.

4. Text Filtering.
 5. Numeric Filtering.

6. Custom Filtering.

4.17 CONSOLIDATE DATA IN MULTIPLE WORKSHEETS

Summarize And Report Results from Separate Worksheets, You Can Consolidate Data

from Each Sheet into A Master Worksheet. The Sheets Can Be in The Same Workbook as The

Master Worksheet, Or in Other Workbooks.

Benefits of consolidating multiple Excel files:

Knowing how to merge two Excel spreadsheets gives you two clear benefits:

• Streamlined data analysis: Consolidating two Excel sheets eliminates

switching between multiple data sources. It also simplifies applying formulas, generating

reports, and visualizing data. For example, you can merge sales data of various stores from

multiple Excel files into a single Excel spreadsheet to easily analyze overall sales

performance and compare store performance.

• Better collaboration: Once you merge Excel sheets, your team members can work

together more efficiently and share insights in a single worksheet rather than different

ones. For example, your marketing team can merge Excel sheets containing data from

different channels (social media, email, website analytics) into one Excel file so the team

members can analyze performance reviews and make strategy adjustments in one

spreadsheet.
Function Output

ABS -The absolute value of a number

AVERAGE -The average or arithmetic mean for a group of numbers

-The number of cell locations in a range that contain a numeric

COUNT
character

-The number of cell locations in a range that contain a text or numeric

COUNTA
character

MAX -The highest numeric value in a group of numbers

-The middle number in a group of numbers (half the numbers in the

MEDIAN group are higher than the median and half the numbers in the group

are lower than the median)

MIN -The lowest numeric value in a group of numbers

MODE -The number that appears most frequently in a group of numbers

PRODUCT -The result of multiplying all the values in a range of cell locations

SQRT -The positive square root of a number

STDEV.S The standard deviation for a group of numbers based on a sample

SUM The total of all numeric values in a group