Question

Lizzy’s assets include her car worth about $7,500 and some stock her grandmother left her worth about $12,000. She still owes $1,500 on her car and about $400 that she borrowed from her brother for spring break. What is Lizzy’s net worth?

Answer 1

Answer: Lizzy's networth is $17600.

We calculate the net worth of a person by first adding up Lizzy's assets and Lizzy's liabilities.

$Total assets = Car + Stock$

$Total assets = 7500 + 12000 = 19500/tex]

[tex]Total liabilities = Money owed on car + borrowings from brother$

$Total liabilities = 1500 +400 = 1900$

Next we deduct total liabilities from total assets to arrive at net worth

$Net Worth = Total Assets - Total Liabilities$

$Net Worth = 19500 - 1900 = 17600$