Hi there. This time we talk about round formula and its applications in finance, accounting, advanced reporting and strategic decision making. Now, majority of you may have worked with round formula at the basic level. So just take a few moments to quickly brush up the basics, but then I need to delve deep inside the tricky part of round formula and how a certain trick will help solve problems which otherwise m round or any such rounding formula will not be able to do so. So now looking at the formula round, it has two parameters number M numb digits, well, if you are given a number which I have made bold and underlined right now, and you're told that I want to learn this number to the nearest whole number. Now quite often, you go to Home tab, you apply this comma style and reduce the decimal, it changes the display to 55.
But mind you, if I multiply 1000 to this 55 it doesn't give you 55,000 it gives you that original number multiplied with time So this particular trick is just for display value change, not for actual number conversion. So for that we take the help of are you equal to zero? You as I write equal to zero, I'll press the Tab key. Once I do so, let me choose the original number. In this case, the cell which is blinking right now, comma, the next parameter, although it says num digits, but the actual meaning is number of decimal digits. How many number of decimal digits would you want to display in the final answer?
If I see zero, it means no number of decimal digits, and hence the number has been rounded off to the nearest whole number. Had I told it one, then yes, I would have received 54.60. So if you want actual decimal in your answer, just need to get one or two or three depending on the number of decimal places you wish to have in your final answer. This was the basics of round formula. Now the basics of round down Round up formula. Here it goes.
If you have been parking your car in a certain mall, and that's for maybe 2.2 hours, you are charged for three hours flat, it doesn't matter whether it was two hours one minute or two minutes or five minutes. Unless your negotiation skills are really good, they will charge you for three hours. So the meaning here is round up. Now, how do I achieve that? Let me delete the cell where the solution is also provided, I will say equal r o u and then choosing round up from the down arrow key pressing the tab key. Now the strategy is almost the same as on formula icon choose the number and then I will say zero which indicates what will number no decimals and what we get is rounded up.
Similarly, on occasions when we talk about piece wage rate system, where a particular worker is paid based on the compete units of product that he has prepared or made. In this case, he may have made 24.8 units of a toy, the 20% still left, in which case he should be paid for just 24 units, the remaining units he can make and finish tomorrow or the next day, and then he gets paid for the next remaining unit. So in this case, the logic is around down before the unit, which has been completed round down the formula which is very similar the previous one, round down, I choose the number and then comma zero ensures that this is rounded down. So this was the basics of round, round up and round down. But for people who have been using Excel for more than five years or 10 years, I would certainly recommend that you watch the next video which is on a specific trick on around formula.