Business Mathematics with MS Excel

Introduction to Excel
Microsoft Excel is one of the most suitable spreadsheet programs that help us to store and represent the data in
tabular form, manage and manipulate data, create optically logical charts, and more. Excel provides you the
worksheet to create a new document in it. You can save the Excel file with .xls extension.

Worksheet
• A worksheet is made of rows and columns that intersect each other to form
cells where data is entered. It is capable of performing multiple tasks like
calculations, data analysis, and integrating data.
• In Excel worksheet, rows are represented by numbers and columns by
alphabets.
• Worksheet size: Maximum of 1,048,576 rows and 16,384 columns
• Zoom range: Maximum of 400 percent (minimum is 10 percent)
• Column width: Maximum of 255 characters
• Row height: Maximum of 409 points
Some of the benefits of using Excel
• Build great charts. Excel allows business users to unlock the
potential of their data, by using formulas across a grid of cells.
• Use conditional formatting.
• To perform complex calculations.
• Bring data together.
• Online access.
• Inexpensive
 Launching Excel 2016
• Excel can be started either by selecting the program from the
Windows start menu, or if there is an existing Excel shortcut available
on your computer, it can be double-clicked to launch the program.
Open Excel by going through these steps:
• Click the Start button
• Select All Programs
• Select Microsoft Office
• Click Microsoft Excel 2016
Home Tab Ribbon
• Paste:
• Cut
• Copy
• Format Painter
• Font:
• Type and Size
• Bold, Italic, Underlined
• Border
• Fill Color
• Font Color
• Alignment
• Top, bottom, middle, left, right Alignments
• Orientation
• Decrease/Increase Indent
• Wrap text
• Merge and Center different options
• Number:
• Increase/Decrease decimal
• Accounting number format
• Percent style
Cells
• Insert
• Delete
• Format :
• Cell size
• Visibility
• Organizing Sheets
• Protection
Editing
• Fill
• Clear
• Sort
• Filter
• AutoSum
Quick Access
• Select the cell and right click
Operations on Insert

Click on insert then as shown dialog box appears

Click on insert Cell
To perform operations like

Place the curser in the cell select the option Entire row to
delete and click on OK so that the row gets deleted.
Similarly to delete column, select Entire column and click
on OK
Click on Shift cell rightok

Ex:-

Here I have selected 3 to shift one cell after selecting

Click on Shift cell Downok

As well as we can create new sheet by default only one

work sheet will be visible, if u want more number of sheets
then click on insert insert cellinsert sheet.
3. Format

Click on Format
 Row Height: To increase and decrease Cell height

Select the cell click on Row height-> Enter the size of the row height u required so that it will increase
/decrease.

Auto fit Height

By mistake you have increased the height of the row bigger the size of the text then select the auto fir height
then it will fit accordingly.

Column Width: To increase and decrease Cell width

Adjust Column Width

method Description
dragging method Move the cursor up to the column heading area and point to the
vertical line to the right of the column that you want to change.
When the cursor becomes a "plus sign" with horizontal arrows,
press the mouse button and drag in either direction to resize the
column. Release the mouse button to accept the new size.

double click to auto fit Move the cursor up to the column heading area and point to the
vertical line to the right of the column that you want to change.
When the cursor becomes a "plus sign" with horizontal arrows,
double click to AutoFit this one column.

AutoFit a range Use the mouse to select the range of cells that needs to be
adjusted and on the Home ribbon in the Cells group, choose
Format, and the select the AutoFit Column Width option.
Insert and Delete Rows and Columns

Procedure Description

Add Row Select any cell of the row where you desire to add a new row
above. On the Home ribbon in the Cell group, click on the Insert
button, and then select Insert Sheet Rows. A new roll will appear
above your selected cell row.

Add Column Select any cell of the column letter where you desire to add a
new column to the left. On the Home ribbon in the Cell group,
click on the Insert button, and then select Insert Sheet Columns.
A new column will appear to the left of your selected column.

Delete Row or Column Select any cell where you desire to delete a row or column. On
the Home ribbon in the Cell group, click on the Delete button,
and then selected Delete Sheet Rows or Delete Sheet Columns.
The row or column where the cell wasselected will be deleted.
Auto Column width
By mistake you have increased the width of the column bigger the size of the text then select the auto
column width then it will fit accordingly.

Visibility
This is used to hide and unhide the rows, columns sheet in the work sheet.
Organize Sheets
This is used to Rename the sheet, apply color to the tabs,
move the sheet from one position to another position.
Protection:

Protect Sheet: click on protect sheet

Below shown box will open, if u want to protect entire sheet then enter the
password
Then it gets protected.
No one can access the sheet.
Performing operations using Conditional
formatting on a given data sets
• Topics to cover
• 1. Highlight the cells with different color based the conditions: is a really
powerful feature when it comes to applying different formats to data that
meets certain conditions. It can help you highlight the most important
information in your spreadsheets and identify variances of cells' value
• Grater than
• Less than
• Equal To
• Text based on name
• Date occurrence
• Duplicates
• Top/Bottom Rules
Examples
• How to create Excel conditional formatting rules
• To truly leverage the capabilities of conditional format in Excel, you
have to learn how to create various rule types. This will help you make
sense of whatever project you are currently working on.
• Conditional formatting rules in Excel define 2 key things:
• What cells the conditional formatting should be applied to, and
• Which conditions should be met.
In your Excel spreadsheet, select the cells you want to format
For this example, I've created a small table listing the monthly crude oil
prices. What we want is to highlight every drop in price, i.e. all cells with
negative numbers in the Change column, so we select the cells C2:C9.

1.Go to the Home tab > Styles group and click Conditional Formatting.
You will see a number of different formatting rules, including data
bars, color scales and icon sets.
2.Since we need to apply conditional formatting only to the numbers
less than 0, we choose Highlight Cells Rules > Less Than...
Less than/Greater than
2. Top/Bottom Rules
• Top 5 elements
• Bottom 5 elements
• Above average
• Below Average
• Top 10%
• Bottom 10%
Above average
Below Average
Top 5 elements
Bottom 5 elements
 Top 10%
Bottom 10%
• If you have selected a 'Top Ten' or 'Bottom Ten' option, the dialog box
also gives you the option of changing the value of '10' to a different
value (e.g. Top 5, Bottom 20, etc).
• The Top10%... formatting option has been applied to cells A2 - D5 of
the spreadsheet on the right.
• It can be seen that, of the 20 cells in the range A2 - D5, the two cells
(i.e. 10% of the cells) with the greatest values have been formatted in
pale red.
Above Average and Below Average
• 3. Data Bars
• Gradient Fill: Adds a colored data bar to represent a data value in a
cell , the higher the value longer the bar.
• Solid Fill

• 4. Color Scales
• Green, Yellow, Red Color Scale--> Apply a color gradient to a range of
cells. The color indicates where each cell value falls within that range.
• 5. Icon Sets
• Directional, Shapes, Ratings.
The Excel Conditional Formatting Data Bars, Color Scales and Icon Sets allow you
to apply formatting to all cells in a range, depending on their value in relation to one
another.

Color Scales and Icon Sets

The table on the left shows examples of Data Bars, Color

Scales and Icon Sets applied to the values 1 - 10 in a
range of spreadsheet cells.
It is shown that, in addition to highlighting patterns in data,
these options can give your spreadsheet a smart and
professional look.
 Usage of Format as Table
• Light
• Dark
• EX:-

You can further adjust the table formatting by choosing Quick Styles options for table elements, such
as Header and Total Rows, First and Last Columns, Banded Rows and Columns, as well as Auto Filtering.
Operations on Insert

Click on insert then as shown dialog box appears

Click on insert Cell
To perform operations like

Place the curser in the cell select the option Entire row to
delete and click on OK so that the row gets deleted.
Similarly to delete column, select Entire column and click
on OK
Click on Shift cell rightok

Ex:-

Here I have selected 3 to shift one cell after selecting

Click on Shift cell Downok

As well as we can create new sheet by default only one

work sheet will be visible, if u want more number of sheets
then click on insert insert cellinsert sheet.
3. Format

Click on Format
 Row Height: To increase and decrease Cell height

Select the cell click on Row height-> Enter the size of the row height u required so that it will increase
/decrease.

Auto fit Height

By mistake you have increased the height of the row bigger the size of the text then select the auto fir height
then it will fit accordingly.

Column Width: To increase and decrease Cell width

Adjust Column Width

method Description
dragging method Move the cursor up to the column heading area and point to the
vertical line to the right of the column that you want to change.
When the cursor becomes a "plus sign" with horizontal arrows,
press the mouse button and drag in either direction to resize the
column. Release the mouse button to accept the new size.

double click to auto fit Move the cursor up to the column heading area and point to the
vertical line to the right of the column that you want to change.
When the cursor becomes a "plus sign" with horizontal arrows,
double click to AutoFit this one column.

AutoFit a range Use the mouse to select the range of cells that needs to be
adjusted and on the Home ribbon in the Cells group, choose
Format, and the select the AutoFit Column Width option.
Insert and Delete Rows and Columns

Procedure Description

Add Row Select any cell of the row where you desire to add a new row
above. On the Home ribbon in the Cell group, click on the Insert
button, and then select Insert Sheet Rows. A new roll will appear
above your selected cell row.

Add Column Select any cell of the column letter where you desire to add a
new column to the left. On the Home ribbon in the Cell group,
click on the Insert button, and then select Insert Sheet Columns.
A new column will appear to the left of your selected column.

Delete Row or Column Select any cell where you desire to delete a row or column. On
the Home ribbon in the Cell group, click on the Delete button,
and then selected Delete Sheet Rows or Delete Sheet Columns.
The row or column where the cell wasselected will be deleted.
Auto Column width
By mistake you have increased the width of the column bigger the size of the text then select the auto
column width then it will fit accordingly.

Visibility
This is used to hide and unhide the rows, columns sheet in the work sheet.
Organize Sheets
This is used to Rename the sheet, apply color to the tabs,
move the sheet from one position to another position.
Protection:

Protect Sheet: click on protect sheet

Below shown box will open, if u want to protect entire sheet then enter the
password
Then it gets protected.
No one can access the sheet.
 Data Validations
• Data validation is an essential part of any data handling task
whether you’re in the field collecting information, analyzing data,
or preparing to present data to stakeholders.
• If data isn’t accurate from the start, your results definitely won’t
be accurate either.
• That’s why it’s necessary to verify and validate data before it is
used.
• While data validation is a critical step in any data workflow, it’s
often skipped over.
• It may seem as if data validation is a step that slows down your
pace of work, however, it is essential because it will help you
create the best results possible.
 Why Validate?
• Validating the accuracy, clarity, and details of data is necessary
to mitigate any project defects.
• Without validating data, you run the risk of basing decisions on
data with imperfections that are not accurately representative of
the situation at hand.
• While verifying data inputs and values is important, it is also
necessary to validate the data model itself.
• If the data model is not structured or built correctly, you will run
into issues when trying to use data files in various applications
and software
 Some of the operations
• Sum
• Average
• Maximum
• Minimum
• Count
• Count()
• Countif()
• Countblank()
 Charts
• A chart is a tool you can use in Excel to communicate data
graphically.
• Charts allow your audience to see the meaning behind the
numbers, and they make showing comparisons and trends
much easier.
• Graphs or charts help people understand data quickly. Whether
you want to make a comparison, show a relationship or
highlight a trend, they help your audience “see” what you are
talking about.
• Among its many features, Microsoft Excel enables you to
incorporate charts, providing a way to add visual appeal to your
business reports.
 Bar Chart
• Bar charts illustrate the comparisons among individual items. A Bar
chart typically displays categories along the vertical (category) axis
and values along the horizontal (value) axis.
• Follow the steps given below to use a Bar chart.
• Step 1 − Arrange the data in columns or rows on the worksheet.
• Step 2 − Select the data.
• Step 3 − On the INSERT tab, in the Charts group, click the Bar chart
icon on the Ribbon
 Some of the operations
• You will see the different types of bar charts available.
• A bar chart has the following sub-types −
• 2-D Bar Charts
• Clustered Bar
• Stacked Bar
• 100% Stacked Bar
• 3-D Bar Charts
• 3-D Clustered Bar
• 3-D Stacked Bar
• 3-D 100% Stacked Bar

Step 4 − Point the mouse on each of the icons and select any of the chart based
on requirement.
Step 5 − Double-click the chart type that suits your data.
 Data Validation in Excel
• Data validation is a feature in Excel which is used to control what
users can enter into a cell. It allows you to dictate specific rules. It
also allows users to display a custom message if users try to enter
invalid data.
• Data validation in Excel is a technique that restricts user input in
a worksheet. It is often used to limit user entry.

• Data tab Data validation

 Settings Tab
The settings tab is where you enter the validation criteria. There are
eight options available to validate for user input:
• Any Value - It removes any existing data validation.
• Whole Number - It allows only whole numbers. For example, you
can specify that the user must enter the number between 0 to 30.
• Decimal - The user must enter a number with decimal values.
• List - The user will have to create a drop-down list to choose from.
• Date - The user will have to enter the date format.
• Time - The user should enter a time.
• Text Length - It validates input based on the length of the data.
• Custom - It validates the user input using a custom formula.
 Copy an Excel sheet from one workbook to another
• You can use the Move or Copy Sheet command to move or copy
entire worksheets (also known as sheets), to other locations in the
same or a different workbook. You can use
the Cut and Copy commands to move or copy a portion of the data
to other worksheets or workbooks.
• OR
• Right click on the worksheet tab and select Move or Copy.
• Select the Create a copy checkbox.
• Under Before sheet, select where you want to place the copy.
• Select OK.
 Freezing Panes and View Options
• Whenever you're working with a lot of data, it can be difficult
to compare information in your workbook. Fortunately, Excel
includes several tools that make it easier to view content from
different parts of your workbook at the same time, including the
ability to freeze panes and split your worksheet.
• Freeze rows:
• You may want to see certain rows or columns all the time in your
worksheet, especially header cells. By freezing rows or columns in
place, you'll be able to scroll through your content while continuing to
view the frozen cells.
• Select the row below the row(s) you want to freeze. In our example,
we want to freeze rows 1 and 2, so we'll select row 3.
On the View tab, select the Freeze
Panes command, then choose Freeze Panes from
the drop-down menu. To freeze columns:
1.Select the column to the right of the column(s) you want
to freeze. In our example, we want to freeze column A,
so we'll select column B.

The rows will be frozen in place, as indicated by

the gray line. You can scroll down the worksheet
while continuing to view the frozen rows at the top.
In our example, we've scrolled down to row 18.
On the View tab, select the Freeze Panes command,
then choose Freeze Panes from the drop-down menu.

If you only need to freeze the top row (row 1) or first

column (column A) in the worksheet, you can simply
select Freeze Top Row or Freeze First Column from the
drop-down menu

The column will be frozen in place, as indicated by

the gray line. You can scroll across the worksheet while
continuing to view the frozen column on the left. In our
example, we've scrolled across to column E.
• Split Pan
• How to enable auto correct…
 Introduction to Percentages %
• The term ‘per cent’ means ‘out of a hundred’.
• In mathematics, percentages are used like fractions and
decimals, as ways to describe parts of a whole.
• When you are using percentages, the whole is considered to be
made up of a hundred equal parts.
• The symbol % is used to show that a number is a percentage,
and less commonly the abbreviation ‘pct’ may be used.
The Meaning of Percentages
• Percentage is a term from Latin, meaning ‘out of one hundred’.
• You can therefore consider each ‘whole’ as broken up into 100
equal parts, each one of which is a single percent.
 What is the Percentage?
• Percentage is a fraction or a ratio in which the value of whole is
always 100.
• For example, if Veeksha scored 30% marks in her math test, it
means that he scored 30 marks out of 100. It is written as
30/100 in the fraction form and 30:100 in terms of ratio.
Percentage Definition:
• Percentage is defined as a given part or amount in every
hundred. It is a fraction with 100 as the denominator and is
represented by the symbol "%"
Formula to Calculate Percentage
• The percentage formula is used to find the share of a whole in
terms of 100. Using this formula, you can represent a number
as a fraction of 100.
• if you observe carefully, all the three ways to get percentage
shown above can be easily calculated by using the formula
given below:
• Percentage= (Value/Total Value)×100
 Basic problems in Percentage
1. Convert each of the following fractions as percentage:
(i) 3/25 = (3/25 × 100) % = 12 %
(iii) 4/5 = (4/5 × 100) % = 80 %
(iii) 3/4 = (3/4 × 100) % = 75 %
(iv) 2/3 = (2/3 × 100) % = (200/3) % = 66 2/3 %
(v) 1 = (1 × 100) % = 100 %
• Note: 100 % = 1
2. Convert 7/20 to per cent.
• 7/20 = (7/20 × 100) % = 35 %
3. Express each of the following fraction into a percentage:
• (i) 6/5
= (6/5 × 100) % = 120 %
• (ii) 42/5

= 22/5 = (22/5 × 100) % = 440 %

(iii) 11/4

= 5/4 = (5/4 × 100) % = 125 %

4. Express each of the following statements in the percentage
form:

(iii) 21 apples out of 30 are good

(i) 5 out of 20 are bad

= 21/30 apples are good

= 5/20 eggs are bad

= (21/30 × 100) % apples are good

= (5/20 × 100) % eggs are bad

= 70 % apples are good

= 25 % eggs are bad

(iv) 47 students out of 50 are present

(ii) 3 children in a class of 30 are absent.

= 47/50 students are present

= 3/30 children are absent

= (47/50 × 100) % students are present

= (3/30 × 100) % children are absent

= 94 % students are present

= 10 % children are absent
 Probability
• Probability defines the likelihood of occurrence of an event.
There are many real-life situations in which we may have to
predict the outcome of an event.
• We may be sure or not sure of the results of an event.
• In such cases, we say that there is a probability of this event to
occur or not occur.
• Probability generally has great applications in games, in
business to make probability-based predictions, and also
probability has extensive applications in this new area of
artificial intelligence.
 Probability (Cont…)
• The probability of an event can be calculated by probability
formula by simply dividing the favorable number of outcomes by
the total number of possible outcomes.
• The value of the probability of an event to happen can lie
between 0 and 1 because the favorable number of outcomes
can never cross the total number of outcomes.
• Also, the favorable number of outcomes cannot be negative.
 What is Probability?
• Probability can be defined as the ratio of the number of
favorable outcomes to the total number of outcomes of an
event.
• For an experiment having 'n' number of outcomes, the number
of favorable outcomes can be denoted by x.
• The formula to calculate the probability of an event is as follows.
• Probability(Event) = Favorable Outcomes/Total Outcomes = x/n
 Terminology of Probability Theory
• Experiment: A trial or an operation conducted to produce an
outcome is called an experiment.
• Sample Space: All the possible outcomes of an experiment
together constitute a sample space.
• For example, the sample space of tossing a coin is head and tail.
• Favorable Outcome: An event that has produced the desired
result or expected event is called a favorable outcome.
• For example, when we roll two dice, the possible/favorable outcomes of
getting the sum of numbers on the two dice as 4 are (1,3), (2,2), and
(3,1).
• Trial: A trial denotes doing a random experiment.
• Random Experiment: An experiment that has a well-defined set of
outcomes is called a random experiment.
• For example, when we toss a coin, we know that we would get ahead or tail, but
we are not sure which one will appear.
• Event: The total number of outcomes of a random experiment is called
an event.
• Equally Likely Events: Events that have the same chances or
probability of occurring are called equally likely events. The outcome of
one event is independent of the other.
• For example, when we toss a coin, there are equal chances of getting a head or a
tail.
• Exhaustive Events: When the set of all outcomes of an experiment is
equal to the sample space, we call it an exhaustive event.
• Mutually Exclusive Events: Events that cannot happen simultaneously
are called mutually exclusive events.
• For example, the climate can be either hot or cold. We cannot experience the
same weather simultaneously.
• Classical Probability: The classical probability of an event E,
denoted by P (E) is defined as below

Definition of Theoretical Probability:

Let a random experiment produce only finite number of mutually exclusive and equally
likely outcomes. Then the probability of an event E is defined as
 Simple Interest
• Simple interest is a method to calculate the amount of interest
charged on a sum at a given rate and for a given period of time.
• In simple interest, the principal amount is always the same, unlike
compound interest where we add the interest of previous years
principal to calculate the interest of the next year.
• Here, you will be introduced to the concept of borrowing money and
the simple interest that is derived from borrowing.
• You will also be introduced to terms such as principal, amount, rate
of interest, and time period.
• Through these terms, you can calculate simple interest using the
simple interest formula.
 What is Simple Interest?
• Simple interest is a quick and easy method to calculate interest on
the money, in the simple interest method interest always applies to
the original principal amount, with the same rate of interest for every
time cycle.
• When we invest our money in any bank, the bank provides us
interest on our amount.
• The interest applied by the banks is of many types one of them is
simple interest.
• Now, before going deeper into the concept of simple interest, let's
first understand what is the meaning of a loan.
 Simple Interest Formula
Simple interest is calculated with the following formula: S.I. = P × R ×
T, where P = Principal, R = Rate of Interest in % per annum, and T = Time,
usually calculated as the number of years. The rate of interest is
in percentage r% and is to be written as r/100.
• Principal: The principal is the amount that initially borrowed from the bank
or invested. The principal is denoted by P.
• Rate: Rate is the rate of interest at which the principal amount is given to
someone for a certain time, the rate of interest can be 5%, 10%, or 13%,
etc. The rate of interest is denoted by R.
• Time: Time is the duration for which the principal amount is given to
someone. Time is denoted by T.
• Amount: When a person takes a loan from a bank, he/she has to return
the principal borrowed plus the interest amount, and this total returned is
called Amount.
 Formula
Amount = Principal + Simple Interest
• A = P + S.I. What is the Simple Interest Formula?
Simple interest Formula is used to calculate the amount of
• A = P + PRT interest charged on a sum at a given rate and for a given period
of time.
• A = P(1 + RT) Let's explore further and have a look at the formula which will
help in solving problems related to simple interest. Also,

Simple interest = Amount paid - Principal. SI = A- P.

Simple Interest Formula
The simple interest for a given amount can be calculated
by the following formula, Simple Interest = (P×R×T)/100
Where,
•P = Principal amount
•R = Rate of interest
•T = Time period
 What is meant by Compound Interest
• Compound interest is the interest paid on both principal and interest,
compounded at regular intervals.
• At regular intervals, the interest so far accumulated is clubbed with
the existing principal amount and then the interest is calculated for
the new principal.
• The new principal is equal to the sum of the Initial principal, and the
interest accumulated so far.
Compound Interest = Interest on Principal + Compounded Interest at
Regular Intervals
 Compound Interest Formula
• The compound interest is calculated, after calculating the total
amount over a period of time, based on the rate of interest, and the
initial principal.
• For an initial principal of P, rate of interest per annum of r, time period
t in years, frequency of the number of times the interest is
compounded annually n, the formula for calculation of amount is as
follows.

The above formula represents the total amount at the end of the time period and includes the compounded
interest and the principal. Further, we can calculate the compound interest by subtracting the principal from
this amount. The formula for calculating the compound interest is as follows
 In the expression,
•P is the principal amount
•r is the rate of interest(decimal)
•n is frequency or no. of times the interest is compounded
annually
•t is the overall tenure.

It is to be noted that the above-given formula is the general formula when the principal is compounded
n number of times in a year. If the given principal is compounded annually, the amount after the time
period at percent rate of interest, r, is given as:
A = P(1 + r/100)t, and C.I. would be: P(1 + r/100)t - P
 Ratio
The ratio of two quantities 'a' and 'b' of the same kind and in the same units is a fraction
a/b which shows that how many times one quantity is of the other
and is written as a : b and is read as 'a is to b' where b ≠ 0.

Terms of the ratio

In the ratio a : b, the quantities a and b are called terms of the ratio. Here, 'a' is called the first
term or the antecedent and `b' is called the second term or consequent.

Example:

In the ratio 5 : 9, 5 is called the antecedent and 9 is called the consequent.

Ratio in the simplest form
A ratio a : b is said to be in the simplest form if a and b have no common factor other than 1.
Note:

● In ratio, quantities being compared must be of the same kind,

otherwise the comparison becomes meaningless.

For example; comparing 20 pens and 10 apples is meaningless.

● They must be expressed in the same units.

● In a ratio, order of the terms is very important. The ratio a: b is

different from b : a.

● The ratio has no units