A progress billing is $95,000 with 5 percent retainage. What retainage amount is withheld?
Correct Answer
B) $4,750.
Retainage is $95,000 x 5 percent = $4,750.
Why This Is the Correct Answer
Retainage is $95,000 x 5 percent = $4,750.
Why the Other Options Are Wrong
Option A: $3,800.
$3,800. is below the supported result for retainage calculation; it likely uses the wrong base, period, or account bucket.
Option C: $3,750.
$3,750. is below the supported result for retainage calculation; it likely uses the wrong base, period, or account bucket.
Option D: $2,250.
$2,250. is below the supported result for retainage calculation; it likely uses the wrong base, period, or account bucket.
Memory Technique
Dollars and percent live in different drawers; Preparing Progress tells which opens.
Reference Hint
Study anchor (closed-book): memorize Retainage 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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