Jessie has $4,000 in a bank account, $2,800 in a 401(k) plan at work, a car with a current value of $28,000, and a house that she purchased for $92,000 that has a current value of $118,000. The current balance of her home mortgage is $81,000, she has one credit card with a $3,000 balance, and a student loan with a balance of $6,000. What is Jessie's current net worth?
A) $62,800
B) $46,800
C) ($242,800)
D) ($62,800)

Question

Quizplus · Accepted Answer

Jessie's net worth is calculated by subtracting her total liabilities from her total assets. Her assets include $4,000 (bank account) + $2,800 (401(k)) + $28,000 (car) + $118,000 (house) = $152,800. Her liabilities include $81,000 (mortgage) + $3,000 (credit card) + $6,000 (student loan) = $90,000. Therefore, her net worth is $152,800 - $90,000 = $62,800.

Jessie Has $4,000 in a Bank Account, $2,800 in a 401(k)