Use the table to answer the question.

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?
7th grade 3 sentences

Answer 1

To calculate Reena's total assets, we add up the values of her car, savings account, and savings for retirement:

Total Assets = $24,728 (car) + $3,589 (savings) + $15,600 (retirement) = $43,917.

Next, we calculate her total liabilities by adding her car loan and credit card balance:

Total Liabilities = $3,000 (car loan) + $762 (credit card) = $3,762.

Finally, we can find Reena's net worth by subtracting her total liabilities from her total assets:

Net Worth = $43,917 (total assets) - $3,762 (total liabilities) = $40,155.

This means Reena has a positive net worth of $40,155, which suggests she is financially stable. With a strong net worth and manageable liabilities, her chances of getting the loan should be good.