To construct a net worth statement, we need to subtract the total amount of liabilities from the total amount of assets.
Total Assets:
Car: $24,728
Savings account: $3,589
Savings for retirement: $15,600
Total Assets = $24,728 + $3,589 + $15,600
Total Assets = $43,917
Total Liabilities:
Car loan: $3,000
Credit card balance: $762
Total Liabilities = $3,000 + $762
Total Liabilities = $3,762
Net Worth:
Net Worth = Total Assets - Total Liabilities
Net Worth = $43,917 - $3,762
Net Worth = $40,155
Reena's chances of getting a loan are good because her net worth statement shows that she has a positive net worth of $40,155. This indicates that she has more assets than liabilities, which demonstrates financial stability and the ability to repay the loan.
ssets Value
Car $24,728
Savings account $3,589
Savings for retirement $15,600
Total Assets
Liabilities Balance Owed
Car loan $3,000
Credit card balance $762
Total Liabilities
Net Worth
Reena wants to put together a net worth statement to
share with her bank as she applies for a small loan.
Showing your work for each step, construct a net worth
statement based on the information she has gathered in
the table. What does this mean for Reena’s chances of
getting a loan?
1 answer
1 answer