WEBVTT
Kind: captions
Language: en
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At this point, your spreadsheet returns the
monthly payment amounts as a negative number
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with many decimal points.
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In this video, you will add an absolute value
formula to return only positive numbers and
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reformat the monthly payment cells as currency.
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In the last video, you changed some relative
cell references to absolute references,
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but something is still off about these calculations.
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With this function, the spreadsheet returns
a negative value for each of these calculations.
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This would work well in a budgeting spreadsheet
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where you wanted to subtract
a payment amount each month.
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But in this case, you do not need a negative
number.
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To correct this, convert these values to an
absolute value so that they always appear
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as positive numbers.
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Return again to the original formula cell.
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Place the cursor
between the equals sign and PMT.
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Type A B S and an open parentheses.
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The autofill menu appears.
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Make sure you are using the absolute value
formula.
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Then, close the parentheses at the very end
of the formula
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so that they enclose the entire PMT function.
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Press Enter.
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The number appears as an absolute value.
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Drag the formula down to copy the revised
function.
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The monthly payment is now displayed as a
positive number,
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but each has many decimal points.
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To reformat these cells to reflect currency,
highlight the cells
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in the monthly payment column of your table.
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Then, change the format to currency.
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All of the numbers appear as dollars and cents.
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Format the Loan Amount column of your table
the same way.
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Good job!
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Compare some of the values in the spreadsheet
you created.
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If you borrowed 5 thousand dollars, it would
cost you close to 150 dollars a month.
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And a loan of 10 thousand dollars would cost
you nearly 300 dollars a month.
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Now, itâ€™s your turn:
Insert an absolute value formula within the
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PMT function to return all positive values.
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Change the cell format in the Loan Amount
and Monthly Payments columns to Currency.
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Compare the monthly payments for several loan
amounts.
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Consider which monthly payment you could reasonably
afford.
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Then, move on to the next video to calculate
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how much interest you would pay
with each loan amount.