A $37,500 adjusted contract is 55 percent complete. If prior payments total $12,800, what additional progress payment reaches current work value?
Correct Answer
D) $7,825.
Fifty-five percent of $37,500 is $20,625. Subtract prior payments of $12,800 to get $7,825.
Why This Is the Correct Answer
Fifty-five percent of $37,500 is $20,625. Subtract prior payments of $12,800 to get $7,825.
Why the Other Options Are Wrong
Option A: $6,825.
$6,825. is below the supported result for progress payment calculation; it likely uses the wrong base, period, or account bucket.
Option B: $7,225.
$7,225. is below the supported result for progress payment calculation; it likely uses the wrong base, period, or account bucket.
Option C: $7,625.
$7,625. is below the supported result for progress payment calculation; it likely uses the wrong base, period, or account bucket.
Memory Technique
Fifty-Five and percent live in different drawers; Checking Earned-Value tells which opens.
Reference Hint
Study anchor (closed-book): memorize Progress payment calculation from CSLB 2026 Law Book; CSLB Home Improvement Contracts / B&P Code Section 7159 home improvement contract requirements; know the rule or calculation trigger without relying on exam-room lookup.
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