To construct a net worth statement, we need to calculate the total value of Reena's assets and liabilities.
Total Assets: $24,728 (Car) + $3,589 (Savings account) + $15,600 (Savings for retirement) = $43,917
Total Liabilities: $3,000 (Car loan) + $762 (Credit card balance) = $3,762
Net Worth: Total Assets - Total Liabilities = $43,917 - $3,762 = $40,155
Reena's chances of getting a loan are good because she has a positive net worth of $40,155. This means that her total assets exceed her total liabilities, indicating that she has some financial stability and assets that can be used as collateral for the loan.
Use the table to answer the question.
Assets 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?
(2 points)
1 answer
3 answers