Question

Omar has $750 in his savings account, owes $800 on his car loan, and has a credit card balance of $250. What are the total amounts of Omar’s assets, liabilities and net worth (may be negative)?

Answer 1

I'm not sure if I'm doing this right, but- If Omar pays off his $800 car loan using the $750 from his savings account he'll need to use $50 from his credit card balance. He'll have $0 left over in his savings and $200 left over in his credit card. He won't have to worry about his car loan anymore, but he will have to worry about paying off his credit card loan now since his savings is zeroed out.