Final answer:
The correct answer is that a smaller portion of the last payment on a mortgage is interest and a larger portion is principal compared to the first payment. This is due to the way payments are structured in a typical fixed-rate mortgage, where interest is calculated on a decreasing principal balance.
Step-by-step explanation:
The correct statement regarding the mortgage is b) A smaller proportion of the last monthly payment will be interest, and a larger proportion will be principal, than for the first monthly payment. This is true because as you make payments on a typical fixed-rate mortgage, the amount of interest you owe each month decreases since it is calculated on the reducing principal balance. Consequently, more of your monthly payment goes towards paying off the principal as time goes on.
Options a and c are incorrect for a fixed-rate mortgage where typically, the monthly payments remain the same throughout the life of the loan, and the proportion of each payment that goes towards principal increases over time.