A lump sum contract on a project has a total contract price of $160,000. Retainage has been held back at 10%. If the contractor has received progress payments for 75% of the project, how much should be the final payment amount?

To calculate the final payment amount in a lump sum contract with retainage, first, we determine the total retainage withheld and the progress payments made.

The total contract price for the project is $160,000, and the retainage percentage is 10%. This means that the amount held back as retainage is:

[

\text{Retainage Amount} = \text{Total Contract Price} \times \text{Retainage Percentage}

]

Calculating this gives:

[

\text{Retainage Amount} = 160,000 \times 0.10 = 16,000

]

This $16,000 is not included in the payments the contractor receives until the project is complete.

Next, we need to figure out how much the contractor has received in progress payments. The contractor has received payments for 75% of the total contract price, which can be calculated as:

[

\text{Progress Payments} = \text{Total Contract Price} \times 0.75

]

So,

[

\text{Progress Payments} = 160,000 \times 0.75 = 120,000

]

Up to this point, the contractor has received $