Question

Megan has $500 in short-term savings, $5,000 in her retirement savings account, $500 in credit card debt, and student loan debt of $6,500. Assuming that these are all of Megan's assets and liabilities, what is Megan's net worth?

Answer 1

5.500 - 7,000 = -$6,995

Answer 2

Given, the amount Megan has in short term savings = $500.

The amount in retirement savings account = $5000.

The amount in credit card debt = $500.

The amount in student loan debt = $6500.

So total assets of Megan = Sum of short term savings and retirement savings.

Total asset = $500 + $5000 = $
`(500+5000)` = $
`5500`

Total liabilities of Megan = sum of credit card debt and student loan debt.

Total liability = $ 500 + $6500 = $
`(500+6500)` = $
`7000`

Now to find Megan's net worth we have to subtract total liability from total asset.

So Megan's net worth = $5500-$7000 = $
`(5500-7000)` = $
`(-1500)`

So we have got the required answer.

Net worth of Megan = -$1500.