Here is a video I shot to explain the MAX and LARGE functions in Excel.
The Max function will give you the largest value in a range of values.
The LARGE function will give you the nth largest value in a list of values. n represents whatever number you want. For example, if you want the 3rd largest value, then n would equal 3 and you would use that in your function.
I have a spreadsheet you can download if you want to follow along: Top Excel Functions 3