Question

Ben owns a townhome valued at $195,000, but still owes $120,000 on the loan. ben has $5,000 in savings and a balance of $1,400 on his credit cards. there is a balance of $20,000 owed on ben’s car which is valued at $38,000. what is ben’s net worth? a. $96,600 b. $97,600 c. $99,400 d. $106,600 please select the best answer from the choices provided a b c d

Answer 1

Answer:

Choice a : $96,600

Step-by-step explanation:

The net worth of a person is computed as total assets - total liabilities in money terms

Ben's assets are as follows:

Townhome: $195,000

Savings: $5000

Car: $38,000

Total Assets: 195000 + 5000 + 38000 = $238,000

Ben's liabilities

Home Loan: $120,000

Credit Card: $1,400

Car Loan: $20,000

Total Liabilities = 120000 + 1400 + 20000 = $141,400

Net Worth = 238000 - 141400 = $96,600   (Answer is choice a)