Question

The Worthingtons love to travel, so when they retired they sold their house and purchased a motor home valued at $165,000. They tow their car, valued at $32,000 behind their motor home when they travel. The Worthingtons have medical bills totaling $1,300 and a balance of $3,000 on credit cards. Since they invested for retirement, the Worthingtons have $200,000 in investments and an additional $20,000 in their savings account. What is the Worthingtons’ net worth?
a.
$411,700
b.
$412,700
c.
$413,700
d.
$414,700

Answer 1

Net worth = assets − liabilities.

Assets = 165,000 + 32,000 + 200,000 + 20,000 = 417,000
Liabilities = 1,300 + 3,000 = 4,300

Net worth = 417,000 − 4,300 = $412,700

Answer: b.