Question

Grace created the net worth statement shown.

Net Worth Statement
Assets Value
House (current value) $125,000
Investments $12,000
Savings account $3,600
Total Assets $140,600
Liabilities
Credit card debt $7,500
Mortgage $86,500
Total Liabilities $94,000
Based on the information in the statement, what is Grace’s net worth?

Answer 1

93,200

Explanation:

To calculate net worth, you add all the asset values, and subract all liabilities. In other words, net worth is what is owned minus what is owed. With that being said, first we need to add all assets.

$125,000+$12,000+$3,600+$140,000=

$281,200

Now, we add all liabilities.

$7,500+$86,500+$94,000=

$188,000

Then, subtract $188,000 from $281,200.

$281,200-$188,000=

$93,200