Question

3. Odette has $50,000 in cash, two U.S. Treasury Bonds with a combined face value of $500, a home worth $100,000, and asset-related liabilities in the amount of $75,000. What is her current net worth

Answer 1

Answer:

her current net worth is $75,500

Explanation:

The computation of the her current net worth is shown below:

As we know that

Net worth is

= Total assets - total liabilities

= ($50,000 + $500  + $100,000) - ($75,000)

= $150,500 - $75,000

= $75,500

Hence, her current net worth is $75,500

We simply deduct the liabilities from the asset to determine the net worth