Elementary Mathematical Models Spreadsheet AppendixSpreadsheet tutorialThis brief tutorial on spreadsheets is designed to cover just enough basics to get you up andrunning as quickly as possible. The instructions on the mechanics of working with aspreadsheet (opening, closing, moving the pointer, clicking, etc.) are peculiar to theMicrosoft Excel version 5.0, but the basic principles should be the same for other versions ofMicrosoft Excel or even other brand names. It is not intended to be a user’s guide nor asubstitute for the documentation that accompanies the software.What is a spreadsheet?A spreadsheet is a computer software package that allows one to enter, manipulate andmaintain data on a grid-like sheet. Two of the advantages in setting up a spreadsheet ratherthan entering data onto a table on a sheet of paper are · if one changes any one piece of data in a spreadsheet, the other data that bear a relationto it (established by the user) will change accordingly. This makes the spreadsheet a“living” document, rather than a static one.· many repetitive calculations that would be impractical by hand (such as summing columnsof numbers over and over again) can be done quickly and easily through proper operationof the spreadsheet.Why are we using spreadsheets? The performance and review of iterative calculations can yield valuable insight into some ofthe mathematical principles of finance and data analysis. Often times, these calculations are soboring and time-consuming to do by hand that by the time the student is done, he has littleenergy nor inclination to think about what was revealed. A spreadsheet can take much of thedrudgery out of these calculations and transform them into effective learning techniques.Also, the spreadsheet is a powerful real-world tool that can be put to immediate use at homeor in a variety of business settings. Don’t be surprised if a working knowledge ofspreadsheets gives you a competitive edge in the job market!What do I have to know about spreadsheets?__________________________________________________________________________SS-1Elementary Mathematical Models Spreadsheet AppendixTo start, you only need to know where one is and how to activate it on a computer that youcan use regularly throughout the semester (your instructor will discuss computer access). Inorder to get through the spreadsheet assignments in this class, you will eventually need toknow how to:· open, close, save and print a spreadsheet· enter data and text· set up basic relations between data entries such as addition and multiplication· cut (remove and save), paste (put) and copy cells (data entries) to other cellsHow do I get started?The ideal way to begin with spreadsheets is to sit down at a computer with someone who hasused one and do some basic operations together. Whether you can get help or not, putyourself through the following tutorial then for more information, consult the help menu thataccompanies your spreadsheet software.Begin Tutorial: Setting up a spreadsheet that compounds money in an account.We wish to create a spreadsheet that will give us the monthly balance and interest for afictitious bank account over a two-year period. Before we open a new spreadsheet, weshould think a bit about what type of data the spreadsheet should show. Let’s assume that the initial deposit is $10,000 and that the interest rate being paid by thebank is 8.5%, compounded monthly. We will need a column that shows the month (numerals1 through 24), one that shows the balance at the beginning of the month, another for theinterest earned, and one for the balance at the end of the month, which is the sum of thestarting balance and the interest earned. The monthly interest, I, will be computed by thesimple interest formula, I = Prt, where t is one month (1/12 of a year) and r is the interest ratein decimal form, .085. In all, we will have four columns.Start the spreadsheet software (the procedure for this depends on the computer you areworking on - hopefully there is an icon for it and you can just double click on it with themouse). By default, this action should open a new spreadsheet for you. If not, you will haveto open one using the menus provided. You should see the blank grid, as below. Note that thecell A1 in the upper left-hand corner has a heavy border around it around it - the cell is saidto be highlighted. Note that the highlighter moves around the screen when you use the arrowkeys (up, down, left right) and that the (mouse) cursor moves freely around the screen whenyou move the mouse on the mouse pad. You can highlight a cell by first putting the cursorover the cell (move the mouse on the mouse pad), then clicking the mouse button once but__________________________________________________________________________SS-2Elementary Mathematical Models Spreadsheet Appendixyou may find that you have more control if you move the highlighter with the arrow keys.Practice moving the highlighter to a cell then entering text and typing on the keyboard. Todelete the text, highlight it, then press the delete key.X fxA B C D E F1234567891011A blank spreadsheet.Clear whatever text you might have entered on the grid sheet and follow these steps.1. Highlight cell A1 and type, Compounding. Note that the text spills over into the adjacentcell. 2. In cell A3, type the column heading, month. In cell B3, type bal-start , standing forstarting balance [Note: Use the column width option in the format menu to accommodate alonger title] In cell C3, type interest and in cell D3, type bal-end. So far, your spreadsheetshould look like this:X fxA B C D E F__________________________________________________________________________SS-3Elementary Mathematical Models Spreadsheet Appendix1 Compounding23 month bal-start interest bal-end4567891011The column headings have been entered3. We would like to have the numerals 1 through 24 (one for each month) running downcolumn A underneath the heading “month”. In cell A4, type the number 1. You could type thenumeral 2 in cell A5, the numeral 3 in A6 and so on, but we can get the spreadsheet to do thisfor us (this is a technique we will need later anyway). Highlight cell A5 and type =A4+1.Note that as you type this, the formula is entered in the formula bar just above the grid. Nowhit enter (or return, as it may be labeled on