A project has $6,500 retainage withheld. The owner releases 60 percent of retainage at substantial completion. How much cash is released?
Correct Answer
D) $3,900.
Sixty percent of $6,500 is $3,900.
Why This Is the Correct Answer
Sixty percent of $6,500 is $3,900.
Why the Other Options Are Wrong
Option A: $2,600.
$2,600. is below the supported result for retention release calculation; it likely uses the wrong base, period, or account bucket.
Option B: $3,250.
$3,250. is below the supported result for retention release calculation; it likely uses the wrong base, period, or account bucket.
Option C: $3,600.
$3,600. is below the supported result for retention release calculation; it likely uses the wrong base, period, or account bucket.
Memory Technique
Percent and dollars live in different drawers; Forecasting Retainage tells which opens.
Reference Hint
Study anchor (closed-book): memorize Retention release calculation from CSLB Law and Business Study Guide; CSLB 2026 Law Book / CSLB Law and Business Study Guide Business Finances; know the rule or calculation trigger without relying on exam-room lookup.
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