2). The base cost of the project is $200,000, Assume the original profit margin is $20,000 ( i.e. 10%). Therefore, the total bid is $220,000. The owner retains 10% of all validated progress payment claims until one half of the contract value ( $110,000*0.10) has been built, and accepted as complete. The progress payments will be billed at the end of month. The owner will transfer the billed amount minus any retainage to the contractor 30 days later. The interest on overdraft is 1% per month.

The amount of each progress payment is given in chart as follows:

How much is the interest paid in up to the end of month 2 ?

Month 1 month 2 month 3 month 4 month 5 month 6

Direct cost $25000 $65000 $75000 $15000

Indirect cost $5000 $5000 $5000 $5000

subtotal

Markup

Total Billed

Retainage withheld

Payment

received

Total cost to date

Total amount billed to date

Total paid to date

Overdraft end of month

interest on overdraft balance

Total amount financed

Group of answer choices

a). 300

b). 1103

c). none of these answers

d). 29,700