Question

Using the Formula tab and dialog box, write the formula to create function 'IF' on the given spreadsheet, where the total income minus expenses is 20% if it is more than Rs 50,000 and 10% if it is less than Rs 50,000. Also write the result statement.

Hint:

Put the figure in B2. Use the IF function from the Logical group of the Formula tab: IF(B2>50,000, 20%, 10%).

Answer 1

Step 1: Understand the requirement:
We need a spreadsheet formula that gives 20% when the total income minus expenses is more than Rs. 50,000.
The same formula must give 10% when this figure is less than Rs. 50,000.
This is a decision with two outcomes, so the IF function from the Logical group of the Formula tab is used.

Step 2: Fix the cell and the syntax:
Suppose the total income minus expenses is shown in cell B2.
The syntax of the IF function is IF(logical_test, value_if_true, value_if_false).
Here logical_test is B2 more than 50,000, value_if_true is 20% and value_if_false is 10%.
So the formula is =IF(B2>50,000,20%,10%).
Note: in the marking scheme the amount is printed as 50,000. When typing in Excel, enter it as 50000 without the comma.

Step 3: Create the function with the Formula tab and dialog box:

Step	Action
1	Select the cell where the function is to be entered
2	Click the Formula tab on the ribbon and then click the Logical option
3	Select the IF function. The Function Arguments dialog box opens
4	Type the condition B2>50000 in the logical_test box
5	Type 20% in the value_if_true box
6	Type 10% in the value_if_false box and click OK. The answer for the condition is displayed

Step 4: Write the result statement:
If the value in B2 is more than Rs. 50,000, the cell shows 20%.
If the value in B2 is less than Rs. 50,000, the cell shows 10%.
Example: B2 = Rs. 60,000 shows 20%, and B2 = Rs. 40,000 shows 10%.

Final Answer:
Formula: =IF(B2>50,000,20%,10%) where B2 holds the total income minus expenses.
Result statement: the cell displays 20% when B2 is above Rs. 50,000, otherwise it displays 10%.