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Tim, a 35yearold marketing executive, owns a house worth $150,000, has a mortgage of $98,000, a car worth $5,500, $1,270 credit card balance, $4,000 in savings, $20,000 in his 401(K), and $35,000 in student loans. Using the given information, calculate Tim's net worth.

A. $39,230
B. $42,230
C. $57,230
D. $60,230

1 Answer

1 vote

Final answer:

After calculating Tim's total assets and liabilities, his net worth should be $45,230. however, this does not match any of the provided options, indicating a possible typo in the question or answer choices.

Step-by-step explanation:

To calculate Tim's net worth, we need to sum up the value of his assets and subtract the total of his liabilities. Tim's assets include his house, car, savings, and 401(K), whereas his liabilities include the mortgage credit card balance, and student loans.

Assets total:
House value = $150,000
Car value = $5,500
Savings = $4,000
401(K) = $20,000
Assets sum = $150,000 + $5,500 + $4,000 + $20,000 = $179,500

Liabilities total:
Mortgage = $98,000
Credit card balance = $1,270
Student loans = $35,000
Liabilities sum = $98,000 + $1,270 + $35,000 = $134,270

To find Tim's net worth, we subtract his liabilities from his assets:

Net worth = Assets sum - Liabilities sum
= $179,500 - $134,270
= $45,230

However, this figure does not match any of the provided options. it seems there may be a typo in the question or the provided options. the correct calculation based on the provided data would give a net worth of $45,230, which is not listed in the options A, B, C, or D.