Question

A new graduate has taken a job with an annual salary of ​$60,000. She expects her salary to go up by​ 2.5% each year for the first five years. Her starting salary is stored in cell A4 of an Excel​ worksheet, and the salary increase rate is stored in cell B4. Construct a table with years 1 through 5 in cells​ A6:A10 and her salary in cells​ B6:B10. Write the formula for her salary in year 2​ (in cell​ B7) that can be copied and pasted correctly in cells B8 through B10.
Enter the formula you used in cell B7 ______.

Answer 1

Answer:

=B6*(1+$B$4)

Explanation:

Note: See the attached excel file for the table constructed as directed by the question.

The cell B6 for the salary in Year 1 is obtained by simply typing =A4*(1+B4) in cell B6; where,

A4 = Annual salary = $60,000

1 = 100%

B4 = Annual percentage salary increase = 2.5%

The cell B7 for the salary in Year 2 is obtained by simply typing =B6*(1+$B$4) in cell B7; where,

B6 = Salary in Year 2

$B$4 = Annual percentage salary increase in which the two dollar signs is obtained by placing the mouse cursor on B4 and then press F4 in order to lock the B4 for the rest of the years = 2.5%

Note that $B$4 allows 2.5% to be multiplied by salary in the previous years for each successive years 2 to 5.

By copying and pasting =B6*(1+$B$4), it will automatically changed to =B7*(1+$B$4), =B8*(1+$B$4), and =B9*(1+$B$4) to obtain salaries in years 3 to 5 respectively.

Therefore, the formula used in cell B7 is =B6*(1+$B$4).

Download xlsx