Net Worth Answers

Which of the following modifications to the list of assets and liabilities below would result in an increase in net worth?Cash of $300.Car valued at $28,000.Car loan of $22,000.Motorcycle valued at $6,000.Savings of $2,000.Credit card balances of $4,000.Student loan of $10,000.a.putting $100 in savingsb.paying $100 on credit cardsc.getting paid $100d.all of the above

Ben owns a townhome valued at $195,000, but still owes $120,000 on the loan. Ben has $5,000 in savings and a balance of $1,400 on his credit cards. There is a balance of $20,000 owed on Ben’s car which is valued at $38,000. What is Ben’s net worth?a.$96,600b.$97,600c.$99,400d.$106,600

When it goes on sale for $1,600, Mikah buys a new plasma television that is valued at $1,800. He takes $300 from his savings account to use as a down payment and finances the rest. Choose the true statement.a.Mikah's assets increased by $1,300.b.Mikah's assets increased by $1,500.c.Mikah's assets increased by $1,600.d.Mikah's assets increased by $1,800.

The following table shows the assets and liabilities of the Smith family in 2005 and 2009.20052009home valued at $200,000home valued at $180,000mortgage of $30,000home equity loan of $18,000car valued at $25,000car valued at $18,000car loan of $8,000boat valued at $20,000 personal loan of $5,000Based on the table, which of the following is true?a.From 2005 to 2009, both assets and liabilities decreased.b.From 2005 to 2009, both assets and liabilities increased.c.From 2005 to 2009, assets decreased and liabilities increased.d.From 2005 to 2009, assets increased and liabilities decreased.

The amount of money invested in a retirement fund is an example of which of the following?a.investment assetb.liquid assetc.long term assetd.use asset

Over the period of a year, Sam’s net worth increased. Which of the following could be true?a.Sam’s assets and liabilities decreased by the same amount.b.Sam’s assets and liabilities increased by the same amount.c.Sam’s assets increased by more than his liabilities.d.Sam’s assets decreased by more than his liabilities.

You have a car that is valued at $12,000. The balance that you owe on the car loan is $7,000. You lose your job and can not afford to make payments on your loan so you sell the car for $9,000 and pay off the loan. Explain how your net worth is affected by your actions.

Mary took out a loan to buy a $30,000 boat but had $2,000 cash to put down.Which of the following is true?a.Mary decreased both assets and liabilities.b.Mary increased both assets and liabilities.c.Mary decreased assets and increased liabilities.d.Mary increased assets and decreased liabilities.

Which of the following modifications to the list of assets and liabilities below would result in a negative net worth?House valued at $90,000.Mortgage owed $78,000.Car valued at $11,000.Car loan of $5,000.Student loan of $13,700.Stocks valued at $2,500.Savings of $3,000.a.Net worth is already negative.b.House value decreasing to $83,000.c.Borrowing $10,000 more in student loans.d.Selling off all owned stocks.

The rare coin collection your grandmother gave you is part of your liabilities.