Verified answer

A2 = Month

B2 = Principal Amount

C2 = Monthly Interest Rate

D2 = Calculated Interest (For Month)

E2 = Payment Amount Received

Month*PrincipalxRate=Int *Amt Received

09 *5,000.00x0.0043=21.35*21.35

10 *5,000.00x0.0043=21.35*21.35

Absolute Reference FIXED COLUMN & FIXED ROW

Formula to calculate (Interest=Principal X Rate) is stored in cell D2. (let's say every month interest is paid and interest rate is fixed, so principal will remain 5,000 and interest rate is fixed at 0.0043)

=$B$2*$C$2

$B$2 and $C$2 (Fixed Column and Fixed Row) indicates to Excel that it should not adjust the column reference nor the row reference. So that when you copy the formula from one cell to another or when you use the Fill tool to fill a formula down a column, the resulting formula for balance in D3 will remain as:

=$B$2*$C$2

--------------------------------

A2 = Month

B2 = Principal Amount

C2 = Monthly Interest Rate

D2 = Calculated Interest (For Month)

E2 = Calculated (Balance=Principal + Interest For Period)

Month*PrincipalxRate=Int *Balance

09 *5,000.00x0.0043=21.35*5,021.35

10 *5,021.35x0.0043=21.44*5,042.80

Absolute Reference FIXED COLUMN

Formula to calculate (Balance=Principal + Interest For Period) stored in cell E2

=$B2+$D2

$B2 and $D2 (Fixed Column) indicates to Excel that it should not adjust the column reference but should adjust the row reference. So that when you copy the formula from one cell to another or when you use the Fill tool to fill a formula down a column, the resulting formula for balance in E3 will be:

=$B3+$D3

notice that the column did not change (still columns B & D) while the rows have changed from 2 to 3.

Hope that helps.

An absolute reference is used when you want to reference a particular cell no matter what is in the box.

Ex: you have something in cell B1 that references a series of formulas in A1 through A10. This may represent some sort of figures for the month of January. It's now February. You want February data in A1-A10 and to move January to C1-C10. So you have D1 that now references C1 - C10. You move the A1 - A10 data to C1-C10. Under a relative reference, B1 will now reference C1-C10 because you copied and pasted the data. However, if you use an absolute reference, B1 will continue to reference A1-A10 and D1 will continue to reference C1-C10.

I hope you understand what i'm trying to say. In simpler terms: An absolute reference will never change based on where you copy and paste the data from that reference.

TAX

In the UK VAT(value added tax) is always 17.5%

So you would set a cell to 17.5% and use an absolute reference to that is your formulas.

Markup

If you want to see profits on a 10% markup you would set a cell to the markup and use an absolute reference to that cell that way you can see diffent markups easly by changeing one cell

There is 2 for u

You can do the 3rd one your slef :P

You can find here some easy examples for using absolute reference: (there are tutorial videos with the examples)

http://www.free-training-tutorial.com/formulas.htm...

hope it helped.....