Final answer:
The total value of Ava's liquid assets is calculated by adding her checking account balance of $1,000 to her investments of $7,500, which equals $8,500. Her house and retirement account are not considered liquid assets.
Step-by-step explanation:
The total value of Ava's liquid assets is the sum of her checking account balance and her investments, since these are the most easily converted into cash without significant loss of value or penalties. Her house and retirement account are not considered liquid assets, as they would either take time to convert to cash or could incur penalties. Therefore, the total value of her liquid assets is:
- $1,000 (checking account)
- $7,500 (investments)
The sum of these amounts is $1,000 + $7,500 = $8,500. Thus, the correct answer to the question about the total value of Ava's liquid assets is Option D, $8,500.