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
