Question

Ted Riley owns a Lexus worth $42,000. He owns a home worth $335,000. He has a checking account with $600 in it and a savings account with $3,100 in it. He has a mutual fund worth $114,000. His personal assets are worth $94,000. He still owes $21,300 on his car and $201,000 on his home, and he has a balance on his credit card of $2,800. What is Ted’s net worth?

Answer 1

Net worth is also known as equity. Equity is the difference between total assets and total liabilities.

Total assets= Worth of Lexus + Worth of home + Checking account + Savings account + Mutual fund + Personal assets

                      = $42,000 + $335,000 + $600 + $3,100 + $14,000 + $94,000

                      = $488,700

Total liabilities= Car loan + Home loan + credit csard debt

                            = $21,300 + $201,000 + $2,800

                           = $255,100

Net worth= $488,700 -  $255,100

                   = $233,600.

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