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Sharon has two liabilities: a credit card balance of $1300 and a car loan balance. Her car has a market value of $9000. She also has a balance of $1450 in her savings account and stocks that are currently worth $1050. What is Sharon's net worth?

A) $8300
B) $9300
C) $7800
D) $8800

User Gfaceless
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1 Answer

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Final answer:

Sharon's net worth is calculated by summing her assets (savings, stocks, car value) and subtracting her liabilities (credit card balance). Without the car loan balance, we assume her car is paid off, leading to a net worth calculation of $10200, which does not match the provided options. We need the car loan balance to determine her accurate net worth.

Step-by-step explanation:

To calculate Sharon's net worth, we need to consider her assets and liabilities. Assets include her savings account balance, the value of her stocks, and the market value of her car. Liabilities include her credit card balance and her car loan balance. We are only given the credit card balance, so we must assume the car loan balance is the difference between the car's value and her total net worth. Here's how we can calculate Sharon's net worth:

  • Savings account balance: $1450
  • Stocks value: $1050
  • Car market value: $9000
  • Credit card balance: -$1300

Total assets value: $1450 + $1050 + $9000 = $11500

Total liabilities value: -$1300 (since we do not have the car loan balance, it remains an unknown 'x')

Thus, net worth is calculated as: $11500 (assets) - ($1300 + x) (liabilities).

To find the options that fit this equation, we must assume the car is fully paid off (since we are not given the car loan balance). Therefore, 'x' would be $0.

Net worth: $11500 - $1300 = $10200 (This is not one of the offered answers, suggesting there may be a car loan balance not accounted for in the question, and without that information, we cannot choose from the given options accurately).

User Rob Parsons
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