The CEO has decided to plan for a salary action affecting a number of individuals in the organization. He has decided to give a $2,000 cost-of-living pay increase to all hourly employees and a $4,000 increase to all software analysts with salaries less than $55,000. However, he wants to do this in 2 years. He wants you to give him two options (you do not have to recommend an option).

Option 1: How much would he have to invest today in a single lump sum at a 6% annual interest rate compounded quarterly to have sufficient funds to execute his plan?

Option 2: How much would he have to invest in equal monthly payments at a 3% annual interest rate compounded monthly to have sufficient funds to execute his plan?

Part 1: Select the following link to download the Microsoft Excel spreadsheet for this assignment: Individual Project Data.

Because the CEO wants to increase salaries for all hourly employees and software analysts, there needs to be a count of the employees in each category.

1.Create an additional worksheet named "DB Calculations."

2.Set up a criteria range in the first few rows and columns to identify all hourly employees. Use this criteria in the Advanced Filter feature to extract all hourly employees.

3.Set up a second criteria range in the columns next to the first to identify the software analysts with salaries less than $55,000. Use this criteria in the Advanced Filter feature to extract all hourly employees.

4.In any cell beneath each criteria range, use the DCOUNT function to calculate the number of hourly employees using the first criteria range, and then again to calculate the number of software analysts with salaries less than $55,000.

5.Multiply the count of hourly employees by 2,000, and the count of software analysts with salaries less than $55,000 by 4,000. The sum of these two numbers will be the total funding needed to execute the CEO's plan.

Part 2: Use the funding you calculated in Part 1 and the appropriate compound interest formulas you learned in business algebra to calculate the investment amounts for options 1 and 2. Show your calculations in any empty area on the worksheet created in Part 1.

Excel Functions:

PV - Returns the present value of a future amount

PMT - Calculates the payment necessary to accumulate a future amount

Compound Interest Formulas:

A = P(1 + i)n

FV = PMT × (1 + i)n - 1

Data Count of Full Average of Salary Job Title Full Name Manager Ku, Wah Name Administrative Assistant Yin, Miao 26000 Administrative Assistant Total 26000 Customer Service Representative Chang, Kathy 28500 Chow, James 35200 Hong, Ping 24900 Linh, Mai 34000 Otega, Jack Pan, Lo Park, Ria 30000 40000 26000 Shen, Egg Customer Service Representative Total 45000 8. 32950 Software Analyst Chan, Ben 47300 Chi, Wang 78000 Chon, Janice 69000 Kang, Raj 54000 Lee, Eddie 61000 Software Analyst Total 61860 Ku, Wah Total Sharpe, 14 42779 Software Analyst Atwood, Leonard Nina 80000 Farell, Matthew 73700 52100 Law, Grace Liteman, Cal Sumner, Charles 77700 51000 Turner, Joe 75000 Webster, Derek 50000 Software Analyst Total 65643 Wicks, S.W. Customer Service Representative Barber, Sam 43700 Bowman, Michael 49600 Burton, Jack 37000 Emerson, Louis 39100 Gabriel, Thomas 54700 Galagher, Jack 37700 Hale, Catherine 36000 Hayden, Vernon 25000 Higgins, Joe 38000 Looker, Ely 51900 Ruiz, Marisa 28000 Walker, Jeremy 44800 Customer Service Representative Total 12 40458 Wicks, S.W. Total 12 40458 Grand Total 33 46785