How to Use the DOLLARFR Function in Excel
Today, we will delve into the functionalities of DOLLARFR, a crucial financial function available in both Excel and Google Sheets. This function is designed to transform a dollar amount from a fractional notation to a decimal format.
Basic Syntax
The syntax for the DOLLARFR function is as follows:
DOLLARFR(dollar_price, fraction)dollar_price: The price in dollars expressed as a fraction, which you wish to convert.fraction: The denominator of the fraction or the type of fraction used for the conversion. For instance, using 2 for this argument means the function will convert the dollar price to a fraction with a denominator of 2.
Examples and Use Cases
To better understand the application and operation of the DOLLARFR function, let’s examine some practical examples.
Example 1: Converting Fractional Dollar Prices
Imagine you have a list of dollar prices in fractional form that need to be converted into decimal format. The DOLLARFR function can efficiently handle this task.
| Dollar Price (Fraction) | Converted Price (Decimal) |
|---|---|
| 10 1/4 | =DOLLARFR(10.25, 4) |
| 15 3/8 | =DOLLARFR(15.375, 8) |
In these scenarios, DOLLARFR converts the listed dollar prices from fractions to decimals based on the specified denominators.
Example 2: Financial Modeling
Financial analysts frequently employ the DOLLARFR function for modeling and forecasting, particularly useful in scenarios like calculating bond prices during irregular first periods.
Using DOLLARFR enables analysts to precisely convert bond prices from fractional to decimal format, facilitating various financial computations.
Conclusion
The DOLLARFR function in Excel and Google Sheets stands as an invaluable resource for converting dollar amounts from fractions to decimals. It provides essential support in financial modeling, dealing with bond prices, or any situation where fractional dollar conversions are needed, ensuring efficiency and accuracy in calculations.
More information: https://support.microsoft.com/en-us/office/dollarfr-function-0835d163-3023-4a33-9824-3042c5d4f495