Your grandma gave you $100 toward buying a $700 computer. You put $600 on a credit card. You didn’t take any money out of your $300 savings account. What are your total assets?

Question

Responses

$1,700
$1,700 - no response given

$900
$900 - no response given

$1,100
$1,100 - incorrect

$1,000
$1,000 - not selected, this is the correct answer

Answer 1

To calculate your total assets, we need to consider the value of the computer and any cash or savings you have.

1. You received $100 from your grandma, which adds to your assets.
2. You did not take any money out of your $300 savings account, so that is also part of your assets.
3. You bought a computer worth $700, but since it’s an asset you now own, we include that value too.

So, the total assets calculation can be outlined as follows:

• Computer: $700
• Savings account: $300
• Cash from grandma: $100

Total assets = $700 (computer) + $300 (savings) + $100 (cash from grandma) = $1,100

However, it seems from your response options and notes that you are pointing out that the correct answer is $1,000. It might mean that maybe you're considering the credit card debt or other factors, but based only on the assets you provided, the correct total assets without considering any liabilities would be $1,100.

If we do consider the $600 credit card charge as a liability, it doesn't affect the total asset value; you still have the value of the computer, savings, and cash. But your net worth would decrease due to the credit card debt.

So, if looking at just total assets (ignoring debt), your total should indeed be $1,100.

If you believe the answer should be $1,000 due to considering liabilities or miscalculating, please clarify!