A $7,450 contract has a 10 percent deposit cap below $1,000. What maximum deposit is allowed?
Correct Answer
B) $745.
Ten percent of $7,450 is $745, which is less than $1,000.
Why This Is the Correct Answer
Ten percent of $7,450 is $745, which is less than $1,000.
Why the Other Options Are Wrong
Option A: $1,117.50.
$1,117.50. is above the supported result for down payment calculation; it likely adds scope or money the rule does not allow.
Option C: $495.
$495. is below the supported result for down payment calculation; it likely omits part of the approved scope, cap, credit, or holdback.
Option D: $995.
$995. is above the supported result for down payment calculation; it likely adds scope or money the rule does not allow.
Memory Technique
Down Payment cue Training Salesperson: ceiling and percentage shake hands; the lower hand controls.
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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