Question

15. Daniel was comparing the net worth worksheets of two families in his economics class. House Value of Household Items Auto Credit Cards Retirement Savings Cash Bank Accounts Value of Jewelry and Art 4 Family A Assets Liabilities $350.000 $20,000 $11.500 $12.575 $375 $2.700 $100 What is the net worth of family B? Family B Assets Liabilities $325,000 $20,000 $21,000 $12.450 $150,000 $400.000 $1.000 $75.000 $26.000 SO SO $50,000 $650 $8.900 $6.000​

Answer 1

To calculate the net worth of Family B, we added all their assets and subtracted their liabilities. The total assets amounted to $998,000, and the total liabilities were $50,650, resulting in a net worth of $947,350.

Step-by-step explanation:

Calculating Net Worth of Family B

To calculate the net worth of Family B, we must subtract their total liabilities from their total assets. The assets for Family B include a house value ($325,000), the value of household items ($21,000), auto ($150,000), retirement savings ($400,000), cash ($1,000), bank accounts ($75,000), and value of jewelry and art ($26,000). To find the total assets, we add these values up:

$325,000 (house value) + $21,000 (household items) + $150,000 (auto) + $400,000 (retirement savings) + $1,000 (cash) + $75,000 (bank accounts) + $26,000 (jewelry and art) = $998,000 total assets.

The liabilities for Family B include credit cards ($50,000) and other debts ($650). Adding these up gives us the total liabilities:

$50,000 (credit cards) + $650 (other debts) = $50,650 total liabilities.

Now subtract the total liabilities from the total assets:

$998,000 (total assets) - $50,650 (total liabilities) = $947,350 net worth.

Therefore, the net worth of Family B is $947,350.