Final answer:
The net worth of the bank is calculated by subtracting total liabilities from total assets, which in this case is $220.
Step-by-step explanation:
How to Calculate a Bank's Net Worth
Calculating a bank's net worth involves setting up a T-account balance sheet and balancing the assets and liabilities. From the information provided:
To set up the T-account, we list the assets and liabilities of the bank:
The net worth is calculated by subtracting the total liabilities from the total assets:
Net Worth = Assets - Liabilities = $620 - $400 = $220