Given the information below, what is the person's net worth? Type your answer in below.

Emergency Fund in Savings Account-$5,000
Car Value $8.000
Car Loan Value Left-$2,000
Retirement Account-$15,000
Credit Card Debt-$900
Home's Market Value-$250,000
Mortgage Value Left-$100,000

1 answer

To calculate the person's net worth, we can use the following formula:

Net Worth = Total Assets - Total Liabilities

Total Assets:

  1. Emergency Fund: $5,000
  2. Car Value: $8,000
  3. Retirement Account: $15,000
  4. Home's Market Value: $250,000

Total Assets = $5,000 + $8,000 + $15,000 + $250,000 = $278,000

Total Liabilities:

  1. Car Loan: $2,000
  2. Credit Card Debt: $900
  3. Mortgage: $100,000

Total Liabilities = $2,000 + $900 + $100,000 = $102,900

Now, we can calculate the net worth:

Net Worth = Total Assets - Total Liabilities Net Worth = $278,000 - $102,900 = $175,100

Therefore, the person's net worth is $175,100.