Business FinancesQuestion 306 of 1605
On a $150,000 contract, the owner withholds 10% retention from each progress payment. After all work is billed, how much money is being held as retention?
a.$1,500
b.$15,000
c.$13,500
d.$135,000
Explanation
Retention = 10% × $150,000 = $15,000. This amount is held by the owner until the project is accepted, which the contractor must plan for in its cash flow.
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