Can Formula be the result of the =IF function

I tried the following IF function:
=IF(a1=Y, b1*1.03, b1*1.25) and it did not
work.

If there is a Y in Column A I want to output Column B multiplied by 1.03 otherwise I want it to output Column B muliplied by 1.25.

Any suggestions?

[NateO]

Try this:

=IF(a1="Y", b1*1.03, b1*1.25)

Cheers,

Nate