Given $125,000 in total liabilities and $100,000 in total assets, what is the net worth?(1 point)

Question

Responses

−$15,000
negative 15,000 dollars

−$25,000
negative 25,000 dollars

$225,000
$225,000

$25,000

Answer 1

To calculate net worth, use the formula:

\[ \text{Net Worth} = \text{Total Assets} - \text{Total Liabilities} \]

In this case, the total assets are $100,000 and the total liabilities are $125,000.

Substituting the values:

\[ \text{Net Worth} = 100,000 - 125,000 = -25,000 \]

Therefore, the net worth is

\[ \text{Net Worth} = -25,000 \text{ dollars} \]

The correct response is:

−$25,000 (negative 25,000 dollars)