Lesson: 07 | Calculating Sales Tax

Expectation

 A custom formula field should have the value 2500 when the value of Amount is  equal to 10000.

 A custom formula field should have the value 180 when the value of Amount is equal to 1000.

Code

IF(Amount < 10000, Amount * 0.18, Amount * 0.25)

Explanation

This formula uses an IF function, which is a logical function that allows you to perform different calculations based on whether a certain condition is true or false. The basic structure of the IF function is:

IF(condition, value if true, value if false)

In this case, the condition being tested is whether the value in the "Amount" cell is less than 10000. If it is, the formula multiplies the amount by 0.18 (or 18%) to calculate the sales tax. If the amount is not less than 10000, the formula multiplies the amount by 0.25 (or 25%) to calculate the sales tax.

So, this formula is used to calculate the sales tax on a given amount of money, with different tax rates applied depending on whether the amount is less than or equal to $10,000.

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