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Referencing Cells

In addition to typing values into your worksheets, you can enter references to cells. Using cell references is often more effective than typing actual values when you want to build formulas. If a value in a referenced cell changes, the formula that points to the reference is updated automatically. Best of all, one cell can be referenced in an unlimited number of formulas. A cell reference does not need to contain an operator unless you want to use it to perform a calculation.

For example, if you're calculating the amount of sales tax due on a car purchase, you can reference the cell that contains the current sales tax percentage in each formula. If the sales tax percentage changes or you enter it incorrectly, updating the percentage amount also updates the car purchase formula, as shown in Figure 5.6.


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