Can't make a long text string with a formula in it!

I want to make a paragraph, for a letter, and it's fairly long, within it I want a cell to be referenced. And I just can't get it it to work. And how would I format the cell?

Example

After careful consideration etc etc , we have determined based on our observations that the amount owing should be equal to (N34). Please pay the amount of (N34) according to the below cost breakdown.

Someone help?

Typically, this would be a letter in Word with a merge field tying back to the data sheet in Excel. We do this a ton at my job.

But, it can be done with something like:
="After carefaul blah blah blah " &N34&". Please pay us "&N34&" now or else we start breaking some kneecaps."

Thanks soberguy,

How would I format the cell itself?

Generally as text, since that's the majority of the content. You can turn the number in N34 into a currency string by doing something like:
DOLLAR(N34,2)

Use that instead of N34 previously referenced. Note that the 2 on the end gives you the number of decimal places, assuming they would be needed.

I wouldn't recommend formatting a cell with a formula as TEXT.
If you ever had to edit the formula afterwards, then pressing enter it will just show the entire formula as a text string.

I'd say the cell with the formula should be formatted as General.