Suppose that David's only assets are an automobile worth $10,000 and a checking account with a $5,000 balance. His only liabilities are a student loan balance of $12,000 and a balance of $9,000 on his car loan. What is his net worth? a) 10,000

b) 9,000

c) 5,000

d) 12,000

e) none of the above

Question

Business

Judith Mclean

19 August, 09:47

Suppose that David's only assets are an automobile worth $10,000 and a checking account with a $5,000 balance. His only liabilities are a student loan balance of $12,000 and a balance of $9,000 on his car loan. What is his net worth? a) 10,000

b) 9,000

c) 5,000

d) 12,000

e) none of the above

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Answers (1)

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Boo Bug · Answer 1

e) none of the above

Explanation:

The net worth of the David's can be determined through the following mentioned formula:

Net worth=Total assets - total liabilities

In the given question

Total assets=automobile + checking account balance

=$10,000+$5,000

=$15,000

Total liabilities=student loan balance+car loan

=$12,000+$9,000

=$21,000

Net worth=$15,000-$21,000 = ($6,000)

So the answer based on the above calculations are e) none of the above

Suppose that David's only assets are an automobile worth $10,000 and a checking account with a $5,000 balance. His only liabilities are a student loan balance of $12,000 and a balance of $9,000 on his car loan. What is his net worth? a) 10,000b) 9,000c) 5,000d) 12,000e) none of the above

Suppose that David's only assets are an automobile worth $10,000 and a checking account with a $5,000 balance. His only liabilities are a student loan balance of $12,000 and a balance of $9,000 on his car loan. What is his net worth? a) 10,000

b) 9,000

c) 5,000

d) 12,000

e) none of the above