To construct a net worth statement, we will follow these steps:
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Calculate Total Assets: We need to add up all of Reena's assets.
\[ \text{Total Assets} = \text{Value of Car} + \text{Savings Account} + \text{Savings for Retirement} \]
Plugging in the values:
\[ \text{Total Assets} = $24,728 + $3,589 + $15,600 = $43,917 \]
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Calculate Total Liabilities: Next, we add up all of Reena's liabilities.
\[ \text{Total Liabilities} = \text{Car Loan Balance} + \text{Credit Card Balance} \]
Plugging in the values:
\[ \text{Total Liabilities} = $3,000 + $762 = $3,762 \]
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Calculate Net Worth: Finally, we calculate Reena's net worth by subtracting her total liabilities from her total assets.
\[ \text{Net Worth} = \text{Total Assets} - \text{Total Liabilities} \]
Plugging in the values:
\[ \text{Net Worth} = $43,917 - $3,762 = $40,155 \]
Summary of Reena's Net Worth Statement:
- Total Assets: $43,917
- Total Liabilities: $3,762
- Net Worth: $40,155
Analysis:
Reena's net worth of $40,155 indicates that her assets significantly exceed her liabilities, which is a positive sign. A higher net worth typically improves a person's chances of securing a loan, as it signifies financial stability and the ability to repay debts.
- Chances of Getting a Loan: Given her high net worth relative to her liabilities, Reena is likely to have a favorable chance of getting the small loan she is applying for. Lenders often look favorably on applicants with a solid net worth, as it suggests they are in a good financial position and can manage additional debt responsibly.
In summary, based on this net worth statement, Reena is in a very good position to apply for a loan.