Question

Which of the following modifications to the list of assets and liabilities below would result in a net worth of $100,000? Recreational Vehicle valued at $110,000. Car valued at $27,000. Medical bills totaling $8,700. Loan balance of $80,000. Savings of $5,000. Retirement fund of $50,000. Credit card balance of $2,300. A. Recreational vehicle value decreasing to $100,000 b. Borrowing $10,000 more in loans c. Withdrawing $20,000 from the retirement fund d. Adding $1,000 in credit card debt Please select the best answer from the choices provided A B C D.

Answer 1

Given what we know, we can confirm that in order to achieve a net worth of exactly 100 thousand dollars, the correct approach would be option D, to add 1,000 dollars in credit card debt.

Why would this result in the desired net worth?

• When adding the initial net worth, we need to add assets and then subtract the liabilities.
• Assets are anything that adds positive value to our balance sheet.
• Meanwhile, liabilities are those which add negative values, such as debt.
• The initial net worth adds up to 101 thousand.
• Therefore, to reduce this to 100 thousand we must add a thousand in liabilities.

Therefore, given that all the previous balances resulted in a net worth of 101 thousand, and our desired net worth is 100 thousand, we needed to add one thousand in liabilities, which is achieved with the credit card debt addition.

To learn more about net worth visit:

brainly.com/question/12294231?referrer=searchResults