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Two simple examples of using Excel formulas:

Example 1 - Calculating Trip Distance
In cell C4 is given the vehicle speed.
In cell C5 is given the trip duration.

Insert the correct formula in cell C8 that will calculate the trip distance, based upon the speed and the duration.

The correct answer:
Because distance is the multiplication of speed and duration, the correct formula will be:

Example 2 - Calculating the Phone Bill
In cell C37 is given the Recurring charges (the basic charges that appear every month)
In cell C39 is given the call time duration (in minutes) of the whole month.
In cell C40 is given the cost per minute.

Insert the correct formula in cell C43 that will calculate the phone bill.

The correct answer:
The phone bill equals the recurring charges plus the number of minutes multiplied by the cost per minute, thus:

Common mistakes when using formulas:

Forgetting to write the Equal sign
Don’t forget starting it always with the “=” sign, otherwise it will be just written to the cell as text.

Mixing texts with numbers
Formulas can’t be based on cells that have mixed numbers and texts. For example, if a cell contains something like this:
120 lbs. or 60 mph or 2,500 USD
Formulas can’t be based on such kind of cells.
You have 2 options:
A. Write the text (signs or letters) in an adjacent cell, and not together with the number.
B. Write the number only in the cell, and afterwards use cell formatting to add special signs or letters (but either way don’t type them down inside the cell with the numbers).