Question

The Worthingtons love to travel, so when they retired they sold their house and purchased a motor home valued at $165,000. They tow their car, valued at $32,000 behind their motor home when they travel. The Worthingtons have medical bills totaling $1,300 and a balance of $3,000 on credit cards. Since they invested for retirement, the Worthingtons have $200,000 in investments and an additional $20,000 in their savings account. What is the Worthingtons’ net worth?a.$411,700b.$412,700c.$413,700d.$414,700

Answer 1

B, 412,700

165,000+32,000-1,300-3,000+200,000+20,000=412,700

Answer 2

The correct option is b) $412,700

Explanation:

Consider the provided information.

The difference between the value of all financial and non-financial assets and the total of all its outstanding liabilities is known as Net worth.

Now first list all the financial and non-financial assets.

A motor home valued $165,000, they tow their car, valued at $32,000 they invested for retirement, the Worthingtons have $200,000 in investments and an additional $20,000 in their savings account.

Now add all the figures as shown:

$165,000 + $32,000 + $200,000 + $20,000 = $417,000

Now calculate the outstanding liabilities:

The Worthingtons have medical bills totaling $1,300 and a balance of $3,000 on credit cards.

Now add all the figures as shown:

$1,300 + $3,000 = 4,300

Subtract the value of financial and non financial assets from outstanding liabilities.

$417,000 - $3,000 = $412,700

Hence, the Worthingtons’ net worth is $$412,700.

Therefore the correct option is b) $412,700