Tim..that doesn't seem to work, as it computes a tax of $50 on an item with
a price of 0.

On the good side, maybe Robert will either have the salesman compute it for
him, or ask his instructor for assistance with this series of "real world"
problems.



"Tim C" wrote in message
...
One way:

=A1*0.06+MAX(A1*0.01,50)

Tim C

"Robert" wrote in message
...
I have created a spreadsheet for aiding me in an automobile purchase.
It computes the invoice, fees, taxes, and monthly payments. Generally,
sales taxes are straight-forward, yet sales tax in my county remains
complex. My County charges 7% on first $5,000 and 6% on the rest. My
spreadsheet has a cell with the sales tax rate, but the sales tax
calculation formula assumes a constant rate. I need some advice on the
best approach on calculating the sales tax and the related formula.
Should I use the MOD function or compute a fixed rate? Please explain
the formula since I am fuzzy on it.