Question

Which of the following modifications to the list of assets and liabilities below would result in a positive net worth?
Home owned $105,000.
Mortgage owed $100,000.
Car valued at $26,000.
Car loan of $22,000.
Investment fund of $4,500.
Savings of $1,500.
Credit card balance of $15,000.
a.
Lowering mortgage by $1,000.
b.
Increasing investment fund by $500.
c.
Adding $100 to savings.
d.
All of the above.

Answer 1

d. All of the above.

Current net worth = (105,000 + 26,000 + 4,500 + 1,500) − (100,000 + 22,000 + 15,000) = 137,000 − 137,000 = 0.
Any of the changes in (a), (b), or (c) would make net worth positive.