Question

Sarah’s net worth is $12,360. Her liabilities are $4,560. If she doubles her net worth, but her liabilities stay the same, what is the new value of her assets?

Answer 1

First, we should know that net worth is assets - liabilities.

So let’s multiply her net worth- we get 24,720.

Now, since no liabilities changed, our net worth would stay the same. We need to do the opposite of finding net worth to find our assets.

24,720+4,560

Now that we know this, let’s do it!

Answer: 29,280.