Question

Keisha owns a house worth $275,000 with a mortgage of $195,000. She owns a car worth $12,000 and has $7,500 in car loans. She has $3,000 in investments, $2,700 in a bank account, and owes $1,500 on a credit card. What is Keisha’s net worth?

Answer 1

Assets=liability+owner's equity
(275000+12000+3000+2700)=(195000+7500+1500)+owners equity

Owner's equity=assets-liability
Owner's equity=292,700−204,000
Owner's equity=88,700