Question

Juan has the following financial information.

Own a $100.000 house
Owe $18,000 on mortgage
Own a car valued at $22,000
Own $25,000 worth of furniture
Owe $450 on furniture loan
$15,000 in emergency saving account at bank
$47,000 in retirement account
pays $1500 a year in child care
$4,500 in student loans
$2,500 cash

what is the net worth?​

Answer 1

Assets: Liabilities: Net Worth:

100,000 18,000 $211,500(Assets) - $24450(Liabilities)

47,000 4,500

25,000 1,500 Net Worth = $187,050

22,000 450

15,000

2,500

Explanation:

First, list your assets (what you own), estimate the value and add up the total, examples include: money in your bank account, your car, personal property (jewelry, furniture etc.)

Then, list your liabilities (what you owe) and add up the outstanding balances, examples include: mortgage, student loan, etc.

Finally, subtract your liabilities from your assets to determine your personal net worth.