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hich of the following modifications to the list of assets and liabilities below would result in a negative net worth? House valued at $90,000. Mortgage owed $78,000. Car valued at $11,000. Car loan of $5,000. Student loan of $13,700. Stocks valued at $2,500. Savings of $3,000. a. Net worth is already negative. b. House value decreasing to $83,000. c. Borrowing $10,000 more in student loans. d. Selling off all owned stocks.

2 Answers

3 votes

Answer:

d. Neither option A nor option B will allow them to meet their goal.

Explanation:

just took the edge test

User Bojan
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8.0k points
6 votes

house =90000

car =11000

stocks = 2500

savings = 3000

add those together = 90000 + 11000 + 2500 + 3000=104250

mortgage = 78000

car loan = 5000

student loan = 13700

add those: 78000 + 5000+ 13700 = 96700

104250-96700 =7550

any change of more than 7550 would result in a negative net worth

so borrowing 10000 for a student loan would do it.


C is the correct answer

User Alex Emelin
by
8.2k points