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Overview of formulas
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Formulas are equations that perform calculations on values in your worksheet. A formula starts with an equal sign (=). For example, the following formula multiplies 2 by 3 and then adds 5 to the result.
=5+2*3
A formula can also contain any or all of the following: functions (function: A prewritten formula that takes a value or values, performs an operation, and returns a value or values. Use functions to simplify and shorten formulas on a worksheet, especially those that perform lengthy or complex calculations.), references, operators (operator: A sign or symbol that specifies the type of calculation to perform within an expression. There are mathematical, comparison, logical, and reference operators.), and constants (constant: A value that is not calculated and, therefore, does not change. For example, the number 210, and the text "Quarterly Earnings" are constants. An expression, or a value resulting from an expression, is not a constant.).

Parts of a formula
Functions: The PI() function returns the value of pi: 3.142...
References: A2 returns the value in cell A2.
Constants: Numbers or text values entered directly into a formula, such as 2.
Operators: The ^ (caret) operator raises a number to a power, and the * (asterisk) operator multiplies.

Using constants in formulas
A constant is a value that is not calculated. For example, the date 10/9/2008.An expression, or a value resulting from an expression, is not a constant. If you use constant values in the formula instead of references to the cells (for example, =30+70+110), the result changes only if you modify the formula yourself.

Using calculation operators in formulas
Operators specify the type of calculation that you want to perform on the elements of a formula. There is a default order in which calculations occur, but you can change this order by using parentheses.

Types of operators
There are four different types of calculation operators: arithmetic,

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