Question

Catherine is 30 years old. She has $600 in a checking account, $10,000 in a savings account, $16,000 in a retirement account, and owns a car worth $8000. What is the total value of her liquid assets?

a. $28,600
b. $38,600

Answer 1

Catherine's liquid assets, which include her checking and savings accounts, total $10,600, excluding her retirement account and car which are not considered liquid.

Step-by-step explanation:

Catherine's total value of her liquid assets can be calculated by adding the value of her checking account and savings account. Liquid assets are those that can be quickly and easily converted into cash. Her retirement account and car are not considered liquid assets, as they cannot be readily converted to cash without significant loss of value or time.

Checking account: $600
Savings account: $10,000
Total liquid assets = $600 + $10,000 = $10,600

Therefore, the correct answer is not given in the available options (a or b). The total value of her liquid assets is $10,600.