Question

Anna lives in a condo with a value of $205,000. She has a mortgage of $175,000. She owes $3,700 on her car, which is valued at $18,700. She has a credit card balance of $1,581. Anna also has $3,500 in a bank account. What is Anna's net worth? A $54,319 C $46,919 B $48,500 D $23,210

Answer 1

C. $46,919

Explanation:

A person's net worth is gotten by subtracting their liabilities (debts) from their assets (properties and money owned).

ANNA'S ASSETS

Condo Value = $205,000

Car Value = $18,700

Bank balance = $3,500

TOTAL = $227,200

ANNA'S LIABILITIES

Condo Mortgage = $175,000

Car debt = $3,700

Credit Card balance = $1,581

TOTAL = $180,281

Therefore, her net worth is:

N = $227,200 - $180,281

N = $46,919

Her net worth is $46,919