Question

Sophia just graduated from college. She just sold the furniture from her college apartment for $450 in cash. She just deposited $2,700 in graduation money into her checking account and has $7,500 saved in her savings account from working part-time. She charged gas and groceries to her credit card that she hasn't paid off yet. The total balance on her credit card is $179. Sophia has driven the same car since high school that is valued at $3,254. She doesn't have an auto loan. Her total student loan amount after graduating is $54,178. What is Sophia's net worth? (Do not include the $ sign or commas in your answer).

Answer 1

Sophia's Net Worth

Sophia's net worth is:

= ($40,453).

Step-by-step explanation:

a) Data and Calculations:

Assets:

Proceeds from sale of furniture = $450

Checking account deposit = 2,700

Savings account 7,500

Car 3,254

Total assets $13,904

Liabilities:

Credit card $179

Student loan after graduating 54,178

Total liabilities $54,357

Sophia's net worth = ($40,453)

b) Sophia's net worth is in the negative because of the student loan. This implies that she is in debt. A negative net worth simply means that Sophia owes more than she owns. In other words, Sophia's liabilities exceed her assets' value.