Question

Lana owns a house worth $325,000 and has a mortgage of $245,000. She owns a guitar worth $750. She also owns a car worth $15,000 and has $9,000 in car loans. She has $8,000 in stock investments and $2,100 in a savings account. What is Lana’s net worth?

Answer 1

Net worth = total assets - total liabilities

Your net worth is all of the non-financial and financial assets that a person or unit own minus all of the outstanding liabilities.

An asset is anything of value and a liability is all debt owed.

Total assets

325,000 (house) + 750 (guitar) + 15,000 (car) + 8,000 (investments) + 2,100 (savings)

=350,850

Total liabilities

245,000 (mortgage) + 9,000 (car loans)

=254,000

Net worth

350,850 − 254,000

=96,850

Answer 2

Net worth=total assets-total liabilities

Total assets
325,000+750+15,000+8,000+2,100
=350,850

Total liabilities
245,000+9,000
=254,000

Net worth
350,850−254,000
=96,850

Hope it helps!