Question

Lizzy’s assets include her car worth about $7,500 and some stock her grandmother left her worth about $12,000. She still owes $1,500 on her car and about $400 that she borrowed from her brother for spring break. What is Lizzy’s net worth?

Answer 1

Answer: Lizzy's networth is $17600.

We calculate the net worth of a person by first adding up Lizzy's assets and Lizzy's liabilities.

`Total assets = Car + Stock`

`image`

`Total liabilities = 1500 +400 = 1900`

Next we deduct total liabilities from total assets to arrive at net worth

`Net Worth = Total Assets - Total Liabilities`

`Net Worth = 19500 - 1900 = 17600`