Question

If a person has a house worth $100,000, a mortgage of $90,000, savings of $5,000, a car valued at $10,000, a $7,000 car loan, and $3,000 in credit card debt. What is this person’s net worth?

Answer 1

Answer:

$15,000

Explanation:

A person's net worth is the difference between their total assets and total liabilities.

In this case,

Assets are

House $100,000

Savings $5,000

Car $10,000

Total assets= $115,000

Liabilities

mortgage of $90,000,

car loan $7,000

credit card debt $3,000

Total liabilities= $100,000

Net worth = Total assets - Total liabilities

=$115,000 -  $100,000

=$15,000