Question

Now that you understand the difference between assets and liabilities, you can use that information to calculate your net worth.

You’ve got the following assets and liabilities:

Value of your car: $1,500
Value of your laptop: $350
Checking account balance: $1,000
Amount owed on cell phone: $275
What’s your net worth?
Question 3 options:

$2,575


$3,125


$1,950


$2,850

Answer 1

Net worth = assets − liabilities = (1,500 + 350 + 1,000) − 275 = 2,850 − 275 = $2,575.

Answer: $2,575.