Capital Reserves

[Anonymous]

Hi there,

I had difficulty in getting exact numbers to match and noticed that within the “Watch Me Build” portion the Capital Reserves formula left the reference cell C37 unlocked. After adjusting to this, my numbers did in fact line up with Quiz #1. Am I correct in pointing this out?

[Michael Belasco]

Hi Steve,

The cell reference being unlocked or locked should not make a difference in the resultant value. Whether you have the formula as =$C$37 or =C37 should provide you with the same result. Check again to verify.

Unfortunately, I’m not sure what the issue might have been, but it seems like you resolved?

Thanks,

Michael

[Anonymous]

Hello,

Is there a reason that the capital reserves for years 3-10 are not grown at the same 2% growth rate? It seems as though the formula in cell J78 should have the growth rate locked for ($C$37) the entire 10 year projection, but in the watch me build video it seems that only year two is increased by 2% while the remaining years are the same 66,300 value. Am I misreading the assumption by thinking the capital reserves should be grown at 2% per year for the entire duration of the projection?

Enjoying the course so far.

[Michael Belasco]

Hi Jeffreybero88,

Great catch and this may have been what Steve was saying and I was just misunderstanding. You are indeed correct in your assumption and that was an error on my part by not locking the cell as I copied the formula to the right in the capital reserves row.

I’ve gone ahead and updated the template, video, and quiz, to correct the issue.

Thanks again for the comment and the heads up!

Michael

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