Question

Amelia is applying for a mortgage loan, and she is required to submit a net worth statement as part of the application process. The following table shows her assets and liabilities. Use this information to calculate her current net worth.

Answer 1

Amelia's net worth can be calculated by subtracting her liabilities from her assets. Her net worth is $500,000.

The net worth of an individual can be calculated by subtracting the liabilities from the assets. In this case, Amelia's net worth is the total value of her assets minus the total value of her liabilities.

Assets: $500,000 (cash) + $300,000 (home) + $200,000 (investment) = $1,000,000

Liabilities: $400,000 (mortgage) + $100,000 (auto loan) = $500,000

Net worth: $1,000,000 - $500,000 = $500,000

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