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30 June, 06:29

Ted Riley owns a Lexus worth $44,500. He owns a home worth $395,000. He has a checking account with $600 in it and a savings account with $3,900 in it. He has a mutual fund worth $119,000. His personal assets are worth $99,000. He still owes $22,700 on his car and $237,000 on his home, and he has a balance on his credit card of $3,600. What is Ted's net worth

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  1. 30 June, 09:17
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    The Ted's net worth is $398,700

    Explanation:

    The net worth is also known as equity. It is a difference between total assets minus total liabilities.

    Here, we use the accounting equation which is equals to

    Total assets = Total liabilities + total equity

    where,

    Total assets = Lexus worth + home worth + checking account + saving account + mutual funds + personal assets

    = $44,500 + $395,000 + $600 + $3,900 + $119,000 + $99,000

    = $662,000

    And, the total liabilities = Car loan + Home loan + credit card balance

    = $22,700 + $237,000 + $3,600

    = $263,300

    So, the net worth would be equal to

    = $662,000 - $263,300

    = $398,700

    Hence, the Ted's net worth is $398,700
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