Personal Finance

Question

Ashley lives in a house with a value of 200,000. She has a mortgage of $150,000. She owes $6,000 on her car, which is valued at $18,000. She has a credit card balance of $800. Ashely also has $1,2000 in a bank account. What is Ashely's net worth?

Answer 1

Rose, net is gross minus debt.

 

Her house is valued at $200,000 but has a mortgage for $150,000. She's up $50,000 because what she has is worth more than she owes.

 

Same with the car. She's up $12,000.

 

Her credit card balance is a debt, so that's $-800.

 

If she has $1200 in the bank, then that's another $1200 in her favor.

 

$50,000 + $12,000 + $1200 - $800 = $62,400 in net worth.

 

Hope this helps!