To create a net worth statement and assess Reena's financial position, we need to calculate the total assets, total liabilities, and net worth using the given information.
Step 1: Calculate Total Assets
To find the total assets, we add up the values of all the assets provided:
- Car: $24,728
- Savings account: $3,589
- Savings for retirement: $15,600
\[ \text{Total Assets} = \text{Car} + \text{Savings account} + \text{Savings for retirement} \]
\[ \text{Total Assets} = 24,728 + 3,589 + 15,600 \]
\[ \text{Total Assets} = 43,917 \]
Step 2: Calculate Total Liabilities
Next, we calculate the total liabilities by adding up the balances owed:
- Car loan: $3,000
- Credit card balance: $762
\[ \text{Total Liabilities} = \text{Car loan} + \text{Credit card balance} \]
\[ \text{Total Liabilities} = 3,000 + 762 \]
\[ \text{Total Liabilities} = 3,762 \]
Step 3: Calculate Net Worth
Net worth is calculated by subtracting total liabilities from total assets:
\[ \text{Net Worth} = \text{Total Assets} - \text{Total Liabilities} \]
\[ \text{Net Worth} = 43,917 - 3,762 \]
\[ \text{Net Worth} = 40,155 \]
Summary of Reena's Net Worth Statement
- Total Assets: $43,917
- Total Liabilities: $3,762
- Net Worth: $40,155
Consideration for Loan Application
Reena's net worth of $40,155 indicates a strong financial position, as her assets significantly exceed her liabilities. Banks typically like to see positive net worth and stable financial resources when considering loan applications.
With her current net worth and relatively low liabilities (especially compared to her assets), Reena is likely to have solid chances of getting a small loan. It demonstrates to the bank that she is financially responsible and should be able to manage additional debt effectively.
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