Question

You missed a monthly payment on your mortgage. Your monthly payment is $1,278. Your mortgage holder places a 5% penalty on all the late monthly payments. What is your total penalty cost?

Answer 1

Answer: $63.90

Explanation:

Answer 2

Answer:

A. $63.9

Explanation:

Your monthly payment is $1,278 => One-month payment is a fixed amount of $1,278

Your mortgage holder places a 5% penalty on all late payments so that the penalty cost for 1 month late would be 5% of one-month payment.

=> Penalty cost can be calculated as the following equation:

Penalty cost = One-month payment x 5%

= 1,278 x 5 / 100 = $63.9

So total penalty cost would be $63.9