
It is much easier to set up an input cell with the exchange rate and reference that cell in any formula needing the exchange rate. If you input a formula in cell C1 of =0.75*B1 (for example to calculate the value in Euros of the USD dollar amount in cell B1), you will have to edit the formula when the exchange rate changes from 0.75 to some other value. For example, conversion from one currency to another requires knowledge of the current conversion rate. Many users set up long and complex formulas with fixed values typed directly into the formula.

All you have to do is add the arguments, and the calculation is automatically made for you. In a spreadsheet, the variables are cell locations that hold the data needed for the equation to be completed.Ī function is a pre-defined calculation entered in a cell to help you analyze or manipulate data in a spreadsheet. Formulas are equations using numbers and variables to get a result. To handle this situation, we use a third type of data: the formula. Often the contents of one cell depends on the contents of other cells. However, we will not always know what the contents should be.

In previous chapters, we have been entering one of two basic types of data into each cell: numbers and text.
