Question

Wayne owns a house with a value of $215,000. He has a mortgage of $175,000 on the house. He has a car worth $12,500 with a loan of $4,000 outstanding. He has $1,875 worth of electronic equipment and a saving account of $2,400. He owes $1,275 on his credit card.

What is the amount of his assets?

What is the amount of his liabilities?

What is Wayne's net worth?

Answer 1

Assets: $231,775

Liabilities: $180,275

Net worth: $51,500

Explanation:

- Assest is something of value. ex. house, barns, tractors. To find this take...

215,000+12,500+1,875+2,400=$231,775

(All these numbers are good things he has, not debt.)

- Liability is debt you will need to repay. ex. loans or accounts payable. To find this take...

175,000+4,000+1,275=$180,275

- Net worth is the difference between your total assests and total liabilities. Knowing difference is subtraction, we should subtract assests minus liablities. To find this take...

$231,775-$180,275=$51,500

- Hope this helps! If you have any further questions or other problems you need help on please let me know as I would be glad to help.