14
QuizMultiple Choice

Net Worth

Question 14 • Financial Math - MA2007 CR

Which of the following modifications to the list of assets and liabilities below would result in a positive net worth?Home owned $105,000.Mortgage owed $100,000.Car valued at $26,000.Car loan of $22,000.Investment fund of $4,500.Savings of $1,500.Credit card balance of $15,000.

Answer
A
Lowering mortgage by $1,000.
B
Increasing investment fund by $500.
C
Adding $100 to savings.
D
All of the above.

Explanation

The assets total $137,000: $105,000 + $26,000 + $4,500 + $1,500. The liabilities also total $137,000, so the starting net worth is $0. Lowering the mortgage by $1,000, increasing the investment fund by $500, or adding $100 to savings would each make net worth positive; therefore, all of the listed modifications would do so.

AI-written and checked against the verified answer.

Previous
Next