# Processing data on a spreadsheet

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# Simple Calculations in Excel

## Introduction

In this guide, we will briefly look at performing a very simple calculation in an Excel spreadsheet. We will use a test document to demonstrate how to create exchange rate calculations.

## Setting Up Fields

In our spreadsheet, we have a few fields set up:

**Exchange Rate:**This is a simple number field, which we can edit. For example, 1.3.**Amount in Pounds:**This is another editable field where we enter the amount in pounds, for example, 654.**Calculated Amount in Euros:**This field will contain the formula to calculate the converted amount.

## Creating a Simple Calculation

Let's delve into how this calculation works. Click on the cell where you want the result to appear. In the formula bar at the top, you will see the actual calculation.

For example:

=SUM(C7 * C5)

This formula tells Excel to perform a calculation. Here’s a breakdown:

**=:**Indicates the start of a formula.**SUM:**Function that calculates the total.**C7 * C5:**Multiplies the value in cell C7 by the value in cell C5.

## Understanding the Formula

In our example:

**C7:**This cell contains the amount in pounds (654).**C5:**This cell contains the exchange rate (1.3).

The formula `=SUM(C7 * C5)`

multiplies these two values, providing the converted amount in euros.

## Adding More Complexity

You can extend this formula for more complex calculations. For instance, to add VAT to the calculated amount, you can modify the formula:

=SUM(C7 * C5 * 1.2)

This will multiply the result by 1.2, effectively adding 20% VAT to the amount.

## Conclusion

Using simple formulas in Excel, you can perform basic calculations with ease. This example demonstrated how to multiply values from two different cells. As you become more comfortable with Excel, you can create more complex formulas to suit your needs.

**Learning Outcomes:**

- EDSQ Unit 2 LO 8.3