Question

4. Which of the following will increase your net worth the most?

All of these increase net worth

Purchase a used car valued at $7,000 with an Auto Loan for $7,000

Purchase of house valued at $150,000 with $25,000 down and a mortgage of $125,000

Sell a bike valued at $75 for $75 cash

None of these increase net worth

Answer 1

all of these increase net worth

Answer 2

Net worth is defined as the total value of assets subtracted by liabilities. Selling a bike to gain cash value even at a minimal amount of $75 increases the net worth. Adding value to an asset without increasing the liability is increasing the net worth.