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What is the value of your total assets if you have a car worth $18,000, you owe $2,000 on the car loan, and you have 10,000 in student loans?

User Vektor
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1 Answer

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Final answer:

The total value of your assets is $18,000, which is the value of the car. Debts do not directly subtract from asset value but are considered liabilities.

Step-by-step explanation:

The value of your total assets is the combined value of everything you own. In this case, you have a car worth $18,000 and you do not have any other assets mentioned. The debts you have, which are the $2,000 on the car loan and $10,000 in student loans, do not subtract from the asset value directly—they are liabilities. So the total value of your assets remains $18,000, which is the value of the car. However, if we were to calculate your net worth, then we would subtract your liabilities from your assets.

User Arrow
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