Question

2. Damian is a 47-year-old insurance agent. He owns Range Rover worth $38,580 with $17,546

remaining on his auto loan balance. He has no student loan debt and a total of $15,680 in his
checking and savings accounts combined. He has a house worth $250,000 with $148,432
remaining on his mortgage loan balance. He has a home equity loan with $65,489 remaining on
the balance. He started saving for retirement when he began his career, so he has $975,575 in
his retirement account.
I
What is Damian's net worth?

Answer 1

$1,048,368

Explanation:

Net worth = assets - liabilities

Assets are things you own

Liabilities is money you owe

Assets

Range Rover ($38,580)

Bank accounts ($15,680)

House ($250,000)

Retirement account ($975,575)

Add them up to get total assets: $1,279,835

Liabilities

Auto loan ($17,546)

Mortgage loan ($148,432)

Home equity loan ($65,489)

Add them up to get total liabilities: $231,467

1,279,835 - 231,467 = 1,048,368