Microsoft Office Tutorials and References

In Depth Information

**Developing a Savings Plan**

The data shows how increasing the monthly amount that Diane and Glenn save

toward a down payment quickly adds up. For example, if they save $800 per month, at

the end of three years (36 months), they would have saved $28,800. This is just a little

less than the $30,000 they want to save for the down payment. You will add the transfer

of $800 from the main savings account to the home savings account each month to the

proposed budget. So that Diane can explore the impact of transferring different amounts

of money per month, you’ll enter the $800 value at the top of the Budget worksheet

where it can be easily referenced and modiﬁ ed.

To specify the $800 transfer amount:

◗

1.
Return to the
Budget
worksheet.

◗

2.
In cell L10, enter
800
. See Figure 3-28.

Figure 3-28

Home savings plan

amount to transfer from the main account

to the home account each month

Next, you’ll apply this monthly savings goal to Diane’s proposed budget. You’ll start

by calculating the impact of transferring $800 on the January balances in the two savings

accounts.

To modify the January balances:

◗

1.
In cell C39, enter the formula =
$L$10
to insert the amount of money withdrawn

from the main savings account in January. The ending balance for the main

account falls to $1,140. You used an absolute cell reference so that this formula

continues to refer to cell L10 when you copy it into the remaining months of

the year.

◗

2.
In cell C41, enter the formula
=K6
to insert the starting balance ($0) in the home

account.

◗

3.
In cell C42, enter the formula
=C39
to insert the amount deposited from the main

account into the home account.

◗

4.
In cell C43, enter the formula
=C41+C42
to calculate the ending balance in the

home account.

◗

5.
Use the Format Painter to copy the formatting from the range
C38:C40
to the

range
C41:C43
.