Question

Lisa has the following assets and liabilities. What is her net worth?

Assets                                      Liabilities
car - $3,500                              car loan - $3,000
savings account - $1,000         credit card - $500
cash - $80
video camera- $120

Answer 1

Net worth= assets-liability
NW=(3,500+1,000+80+120)−(3,000+500)
Nw=1,200

Answer 2

Lisa has a net worth of $1200.

Explanation:

Net worth of a person is defined as his total assets minus total liabilities. Assets are his personal things that he owns and liabilities are to be paid off.

Assets here are : car, saving account, cash and video camera.

Liabilities are : car loan and credit card

So, total assets will be =
`3500+1000+80+120=4700`

Total liabilities are =
`3000+500=3500`

So, net worth will be =
`4700-3500=1200`

Hence, Lisa has a net worth of $1200.