Florida General Contractor Practice Exam

In a contract signed for 98,760 with a 10% retainage, what would the total retainage be after waiving 50% of it?

1. 4,938

2. 9,752

3. 4,938.00

4. 9,876.00

The correct answer is: 4,938.00

To determine the total retainage after waiving 50% of it, you first need to calculate the original amount of retainage based on the contract amount. The contract is signed for $98,760, and the retainage percentage is 10%. First, calculate the total retainage: - Total retainage = Contract amount x Retainage percentage - Total retainage = $98,760 x 10% = $9,876. Next, if 50% of the retainage is waived: - The amount waived = Total retainage x 50% - The amount waived = $9,876 x 50% = $4,938. Now, calculate the retainage remaining after waiving 50%: - Remaining retainage = Total retainage - Amount waived - Remaining retainage = $9,876 - $4,938 = $4,938. This means that the total retainage after waiving 50% is indeed $4,938. Therefore, the correct answer reflects that amount, reinforcing the understanding of retainage calculations in contracting.