A contractor performs $45,000 of electrical work requiring a 15% retention. If the retention is released after final inspection, what amount was held during construction?
Correct Answer
D) $6,750
$45,000 × 0.15 = $6,750 held as retention during construction until final inspection approval.
Why This Is the Correct Answer
$45,000 × 0.15 = $6,750. This is the standard percentage-of-contract retention calculation. The full 15% of the contract value is withheld during construction and released only after final inspection approval.
Why the Other Options Are Wrong
Option A: $6,250
$6,250 results from using approximately 13.9% of $45,000, which does not correspond to the stated 15% retention rate. This is a distractor designed to catch off-by-one arithmetic errors.
Option B: $5,750
$5,750 corresponds to roughly 12.8% of $45,000 — again, not 15%. This option traps candidates who miscalculate or confuse the retention percentage.
Option C: $7,250
$7,250 results from using approximately 16.1% of $45,000, slightly above the stated 15%. This distracts candidates who round up or misread the percentage.
Memory Technique
$45,000 × 15% = $6,750. Check: $45K × 10% = $4,500; $45K × 5% = $2,250; add them: $6,750. Breaking the percentage into 10% + 5% is a fast mental math approach for exam conditions.
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