Formulae & Spreadsheets (AQA Level 3 Mathematical Studies (Core Maths))

Revision Note

Jamie Wood

Written by: Jamie Wood

Reviewed by: Dan Finlay

Formulae & Spreadsheets

  • Spreadsheets are used widely within finance

  • They allow information to be tabulated clearly, and calculations to become automated using formulae

  • Spreadsheets are useful to both individuals and businesses for tracking and modelling their finances and budgets

What do I need to know about formulae and spreadsheets?

  • Columns are denoted by letters, and rows are denoted by numbers

  • When entering a formula, start with the character = this tells the spreadsheet that what follows is a formula and not just text

  • You should be able to use some basic formulae involving add, subtract, multiply, divide, and SUM

    • =B1+B2+B3

      • Returns the sum of the values in cells B1, B2, and B3

    • =E8-E7

      • Returns the value of cell E7 subtracted from cell E8

    • =4*C6

      • Returns the product of 4 and the value in cell C6

    • =B7/D8

      • Returns the value of cell B7 divided by cell D8

    • =SUM(A3:A8)

      • Returns the sum of the values in cells A3 to A8 (6 values in total)

Examiner Tips and Tricks

In an exam you may be asked to write a simple formula that could be entered into a cell to carry out a calculation.

  • Make sure you include the =

  • Use cell references, like C5, rather than the cell values where relevant

Worked Example

A mortgage is taken out for £200 000 at the end of March 2024.

The annual interest is 4.8%, charged monthly at 0.4%. The monthly payment is £1049.

At the end of each month, the interest is added on, and then the payment is deducted. The spreadsheet shows some information about the amount still owed at the end of each month.

A

B

C

D

E

1

Month

Monthly Interest (as decimal)

Interest added on

Payment

Balance

2

Initial Borrowing

200 000.00

3

April 2024

0.004

1 049.00

4

May 2024

0.004

1 049.00

5

June 2024

0.004

1 049.00

6

July 2024

0.004

1 049.00

7

August 2024

0.004

1 049.00

(a) Write a formula to calculate the value in cell C3.

Cell C3 shows the interest added on for April 2024

The interest added on each month is the balance multiplied by the monthly interest rate

=B3*E2

(b) Write a formula to calculate the value in cell E3.

Cell E3 shows the remaining balance at the end of April 2024

Take the previous balance (E2), add on the interest charged for the month (C3), and subtract the payment made (D3)

=E2+C3-D3

(c) Write a formula to calculate the percentage of the original mortgage still left to pay at the end of August 2024.

The balance at the end of August 2024 is in cell E7

Find this as a fraction of the original balance (E2), and multiply by 100

=(E7/E2)*100

Spreadsheets can be formatted so that decimals are presented as percentages, (e.g. 0.73 will display as 73%), so multiplying by 100 is optional

(d) Write a formula using the SUM function to find the total paid between April and August inclusive.

The amount paid each month is in column D

=SUM(D3:D7)

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Jamie Wood

Author: Jamie Wood

Expertise: Maths

Jamie graduated in 2014 from the University of Bristol with a degree in Electronic and Communications Engineering. He has worked as a teacher for 8 years, in secondary schools and in further education; teaching GCSE and A Level. He is passionate about helping students fulfil their potential through easy-to-use resources and high-quality questions and solutions.

Dan Finlay

Author: Dan Finlay

Expertise: Maths Lead

Dan graduated from the University of Oxford with a First class degree in mathematics. As well as teaching maths for over 8 years, Dan has marked a range of exams for Edexcel, tutored students and taught A Level Accounting. Dan has a keen interest in statistics and probability and their real-life applications.

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