A contractor collected a $1,000 deposit on a $9,200 home improvement job. By how much does that exceed the 10 percent cap?
Correct Answer
C) $80.
Ten percent of $9,200 is $920. A $1,000 deposit exceeds that amount by $80.
Why This Is the Correct Answer
Ten percent of $9,200 is $920. A $1,000 deposit exceeds that amount by $80.
Why the Other Options Are Wrong
Option A: $20.
$20. is below the supported result for down payment calculation; it likely omits part of the approved scope, cap, credit, or holdback.
Option B: $40.
$40. is below the supported result for down payment calculation; it likely omits part of the approved scope, cap, credit, or holdback.
Option D: $100.
$100. is above the supported result for down payment calculation; it likely adds scope or money the rule does not allow.
Memory Technique
Small-job money rule for down payment: ceiling and percent race, lower one wins.
Reference Hint
Study anchor (closed-book): memorize Down payment calculation from CSLB 2026 Law Book; CSLB Home Improvement Contracts / Business and Professions Code Section 7159 home improvement contract requirements; know the rule or calculation trigger without relying on exam-room lookup.
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