Question

Lucky Louie just inherited $50,000 from his great aunt, has $1,500 in his checking account, owns a car with a value of $8,000, and has $20,000 in his 401(k) at work. Louie owes $6,000 on his car, $12,000 on school loans and $3,000 on his credit card. What is Louie's net worth?

Answer 1

$58,500

Step-by-step explanation:

Net worth is the difference between total assets and total liabilities.

I.e network = Asset - Liabilities

For Louie: Assets

Inheritance $ 50,000.00

Checking account $ 1 ,500.00

Car $ 8,000.00

403 (k) $ 20,000.00

Total $ 79,500.00

Liabilities

Car loan $ 6,000.00

School fee loan $ 12,000.00

credit card $ 3, 0000.00

Total $21, 000.00

Net worth = $ 79,500- $21,000

=$58,500