For this IF function, look at cell A1. The logical test asks if the value in A1 is less than 100,000: in this case, the value of 90,000 would be less. If the value in A1 is under 100,000, the value is to be multiplied by 0.05 (5%), and multiplied by 0.075 if it is 100,000 or greater (7.5%). For a value of 90,000 * 0.05, the value that would be displayed in the cell with the IF function would be 4,500.