Types of Data

In a spreadsheet there are three basic types of data that can be entered.

• labels - (text with no numerical value)
• constants - (just a number -- constant value)
• formulas* - (a mathematical equation used to calculate)

data types	examples	descriptions
LABEL	Name or Wage or Days	anything that is just text
CONSTANT	5 or 3.75 or -7.4	any number
FORMULA	=5+3 or = 8*5+3	math equation

Labels in Excel

Labels are text entries. They do not have a value associated with them. We typically use labels to identify what we are talking about.

In our first example: the labels were

• computer ledger
• car loan
• interest
• # of payments
• Monthly Pmt.

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Again, we use labels to help identify what we are talking about. The labels are NOT for the computer but rather for US so we can clarify what we are doing.

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*ALL formulas MUST begin with an equal sign (=).

Constants in Excel

Constants are entries that have a specific fixed value. If someone asks you how old you are, you would answer with a specific answer. Sure, other people will have different answers, but it is a fixed value for each person.

In our first example: the constants were

• $12,000
• 9.6%
• 60

As you can see from these examples there may be different types of numbers. Sometimes constants are referring to dollars, sometimes referring to percentages, and other times referring to a number of items (in this case 60 months).These are typed into the computer with just the numbers and are changed to display their type of number by formatting (we will talk about this later).
Again, we use constants to enter FIXED number data.

Formulas in Excel

Formulas are entries that have an equation that calculates the value to display. We DO NOT type in the numbers we are looking for; we type in the equation. This equation will be updated upon the change or entry of any data that is referenced in the equation.

In our first example, the solution was $252.61
This was NOT typed into the keyboard. The formula that was typed into the spreadsheet was:
=PMT(C4/12,C5,-C3)

C4 (annual interest rate) was divided by 12 because there are 12 months in a year. Dividing by 12 will give us the interest rate for the payment period - in this case a payment period of one month.

It is also important to type in the reference to the constants instead of the constants. Had I entered =PMT(.096/12,60,-12000) my formula would only work for that particular set of data. I could change the months above and the payment would not change. Remember to enter the cell where the data is stored and NOT the data itself.

Formulas are mathematical equations. There is a list of the functions available within Excel under the menu INSERT down to Function.

Formulas OR Functions MUST BEGIN with an equal sign (=).

Again, we use formulas to CALCULATE a value to be displayed.