The Roth family has liquid assets of $10,000, use assets of $150,000 and investment assets of $34,000. They also have liabilities totaling $108,000. If their total liabilities increase by $7,000 over the next year, by how much would the Roth family need to increase their assets in order to have a net worth of $100,000?

The Roth family’s current assets total $194,000: $10,000 + $150,000 + $34,000. If liabilities rise from $108,000 to $115,000, they would need assets of $215,000 to have a $100,000 net worth ($215,000 − $115,000 = $100,000). That is an increase of $21,000, so the correct choice is $21,000.

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