Question

In cell C13, construct a formula to calculate the annual projected employee benefit costs for the year 2021 after the projected increase of 3% is applied. a) =B13 * 1.03 b) =C12 * 0.03 c) =A13 + (A13 * 0.03) d) =B12 * 1.03

Answer 1

The correct formula to calculate a 3% increase on the previous year's employee benefit costs depends on which cell contains the relevant cost. Option a) =B13 * 1.03 or option d) =B12 * 1.03 apply the correct calculation method, but the right choice depends on whether B13 or B12 is the correct cell for the previous year's cost.

Step-by-step explanation:

The student is asking for the correct formula to calculate the annual projected employee benefit costs for the year 2021 after a projected increase of 3%. The formula should reflect the new costs based on the previous year's costs increased by the given percentage. In the proposed options, the correct formula should take the previous year's cost and increase it by 3%, which is essentially multiplying the previous year's cost by 1.03. Looking at the options provided:

• Option a) =B13 * 1.03
• Option b) =C12 * 0.03
• Option c) =A13 + (A13 * 0.03)
• Option d) =B12 * 1.03

Options a) and d) multiply by 1.03, reflecting the correct method for calculating a 3% increase. However, without additional context, we do not know whether B12 or B13 holds the previous year's cost. If B13 is the cell that includes the relevant cost for the previous year, then option a) is correct. If B12 is the previous year's cost, then option d) is correct. Options b) and c) use incorrect calculations by either only calculating 3% of the previous year's cost or adding a 3% increase without using the multiplication method that directly calculates the new total.

Answer 2

The formula to calculate the projected increase of employee benefit costs by 3% in cell C13 is '=B13 * 1.03'. This formula captures the entire current amount plus the 3% increase by multiplying by 1.03, whereas the other options do not calculate the correct total projected costs.

Step-by-step explanation:

The student has asked how to construct a formula in cell C13 to calculate the annual projected employee benefit costs after a projected increase of 3% for the year 2021. The correct formula to use for this calculation in a spreadsheet application such as Excel would be option a) =B13 * 1.03.

This formula takes the current year's benefit costs from cell B13 and increases it by 3%. The multiplication by 1.03 is equivalent to calculating 100% of the original amount (the full value in B13) plus an additional 3% (the increase).

Options b), c), and d) do not provide the correct method for increasing the value by 3%. Option b) would only calculate 3% of the previous cell's value, option c) confusingly includes a cell reference that does not match the consistent pattern for the operation, and option d) references the wrong cell for the basis of the calculation.