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Naya [18.7K]
3 years ago
15

Hayden is organizing his assets and liabilities in the table below. If his net worth is $17,550, then how much does he have in h

is checking account?
Item Value
Automobile (current value) $13,600
Retirement Account $6,700
Student Loan -$4,800
Checking Account ?
Credit Card Debt -$750
Mathematics
1 answer:
77julia77 [94]3 years ago
7 0

Answer: His checking account balance is $2,800.

Step-by-step explanation: What Hayden is doing is comparing his assets against his liabilities. This will determine his net worth. His assets ideally are those that increase his net worth such as landed properties, etc while his liabilities in the simplest language are those debts he is paying off either right away, or that he must pay off eventually.

In other words, to determine his net worth, Hayden has to add up all his assets and from the total derived, deduct his liabilities.

Consider the calculations below;

NET WORTH: $17,550

Add ASSETS  

                         Automobile               13600  

                         Retirement Account   6700

                         Checking Account      XX

Less LIABILITIES

                          Student Loan            4800

                          Credit card debt          750

Net Worth                                            <u>17550</u>

The above table can be simplified as follows;

Net worth = Assets - Liabilities

17550 = 20300 + XX - 5550

Collecting like terms, you now have;

17550 -20300 +5550 = XX

2800 = XX

The Checking Account represented by XX is now calculated as $2,800

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