Question

Patricia McDonald has determined that the value of her liquid assets is $4,500, the value of her real estate is $135,000, the value of her personal possessions is $58,000, and the value of her investment assets is $72,000. She has also determined the value of her current liabilities is $7,500 and the value of her long term liabilities is $98,000. What is Patricia's net worth?

Answer 1

Answer:

The correct answer is $164,000.

Explanation:

According to the scenario, the given data are as follows:

Assets

Liquid assets = $4,500

Real estate = $135,000

Personal possession = $58,000

Investment assets = $72,000

Liabilities

Current liabilities = $7,500

Long term liabilities = $98,000

So, we can calculate Patricia's net worth by using following formula:

Net worth = Total Assets - Total Liabilities

= ( $4,500 +$135,000 + $58,000 + $72,000) - ( $7,500 + $98,000 )

=  $269,500 - $105,500

=  $164,000

Hence, Patricia's net worth is $164,000.