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natita [175]
3 years ago
13

1. Net Worth is equal to assets minus liabilities. Which event will have the greatest impact (positive or negative) on one's net

worth? Finance a used car at market value for $16,000 Inherit $2,000 from a relative Go on a vacation that costs $3,500 Buy a new car at market value for $15,000. Car depreciates 20% upon transfer of ownership from the dealer to the buyer. Pay off $4,000 of school loans with cash
Business
1 answer:
elena-14-01-66 [18.8K]3 years ago
7 0
The answer is <span>Go on a vacation that costs $3,500 
</span><span>
Paying off money for buying a car will not decrease your net worth as you get the car as assets for the money you use. But the depreciates 20% will cause you to lose $3,000 assets. Assuming you are not buying assets at all, g</span><span>o on a vacation that costs $3,500 will increase liability.</span>
Paying up bills will decrease your asset but it also decreases your liability to the net worth wouldn't change. 
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