Beau has an annual adjusted gross income of $89,750. he is applying for a mortgage loan that would have a monthly payment of $1,025. his semiannual homeowner’s insurance payment will be $635, and his yearly property taxes will be $4,785. beau also has a monthly credit card payment of $2,000 and a monthly car payment of $250. using the formula, determine beau’s front-end ratio to the nearest percentage.
a. 19%
b. 20%
c. 21%
d. 24%