ModeldrillPayroll from headcount and raises
A financial modeling exercise from Modeldrill. Solve it with a live spreadsheet grid in your browser, with Fill right and Fill down, and it is checked the moment you submit.
The task
Build average salary in row 7 (the first year comes straight from B2, later years add the raise in B3) and payroll cost in row 8 (headcount times average salary).
What this exercise teaches
The first column of a forecast often differs from the rest: it links to an input, while later columns build on the prior year. Writing =$B$2*(1+$B$3) everywhere would give one raise and never compound.
A hint if you get stuck
B7 only points at the assumption. C7 builds on the year to its left, so it compounds when filled: =B7*(1+$B$3).
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