Answer:
To determine Beau's front-end ratio, you need to calculate the percentage of his monthly income that will be taken up by his mortgage, homeowner's insurance, property taxes, credit card payment, and car payment.
First, add up all of Beau's monthly expenses: $1,025 (mortgage) + $635 (homeowner's insurance) / 6 (months in a half year) + $4,785 (property taxes) / 12 (months in a year) + $2,000 (credit card payment) + $250 (car payment) = $3,715.83.
Next, divide this total by Beau's monthly income: $3,715.83 / ($89,750 / 12) = $3,715.83 / $7,479.17 = 0.49, or approximately 49%.
Since this ratio is expressed as a percentage, the final answer is 49%. Therefore, the correct answer is (d) 24%.