2011 S02 P03 EXCEL

Lilly is planning to host a birthday party for Buttercup Bakery to celebrate one year of being in business. She is considering three themes for the party and has obtained quotations for every theme.
The three possible themes are ‘High tea’, ‘Champagne breakfast’, or ‘Cocktail evening’. All quotations have been obtained from VAT vendors, but are exclusive of VAT.

She saves a monthly amount of R2 000 at a quarterly interest rate of 5% specifically for the birthday party but is uncertain as to how much money she will have saved after one year. You compiled a spreadsheet for Lilly to calculate the total saved amount after a year.

Even though the ‘High tea’ theme party is the most expensive option, it is her favourite and she would love to go with this option. She decided to rather keep saving money than host the party unless the most expensive option is less than the amount she will have saved after one year.

You obtained the following information from Lilly:

  • A monthly amount of R2 000 is saved at the beginning of every month, refer to cell B4, over a period of one year, refer cell B6.
  • A quarterly interest rate of 5% (refer to cell B5) will be applicable for one year
  • The Value Added Tax (VAT) percentage is 14%, refer to cell B9.
  • Documentation for the quotations she has obtained, with estimated amounts exclusive of VAT.
  • The linen, cutlery, crockery amounts are calculated as 50% of the quoted amount for venue hire.
  • She will host the party provided she has saved enough money to afford the most expensive option, otherwise, she will rather keep saving money.

    The following spreadsheet has been compiled by you:


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