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## About this lesson

An overview of the key functions used for financial modeling in Excel.

## Exercise files

There are no related exercise files for this lesson.

## Quick reference

### Functions Overview

In this lesson we will walk through some of the key functions used in Financial Modeling.

### When to use

An overview of some of the key functions most commonly used when developing a financial model in Excel. As a rule of thumb, a formulae should be no longer than your thumb.

### Instructions

- Functions within formulae
- General terminology: “
**=FUNCTION(Argument_1,Argument_2,…)**”

- General terminology: “
- Embedding Functions
- Writing formulae with functions embedded within other functions
- “Staggered Development Principle”
- ALT + ENTER to space out formulae over multiple lines

- A function can contain any or all of the following:
- Equals sign
- Function name
- Parenthesis
- Arguments

- Functions do not all return values, i.e. a number
- Some functions return other types of data including TRUE / FALSE, or a worksheet range

- Everyday functions:
- SUM, AVERAGE, MIN, MAX

- Logic functions:
- IF, AND, OR, NOT

- Other functions:
- CHOOSE, INDEX, MATCH, OFFSET

- Function Tips
- Press ‘F2’ to edit a cell instead of double-clicking on it
- Press ‘Esc’ to exit a cell without making any changes
- Use the ‘fx’ button next to the formula bar to learn how an Excel function works

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