Brad and Angie own a nice house worth $400,000. They have two cars worth $20,000 each, and $5,000 in the bank. They recently borrowed $100,000 on their house in order to send their daughter, Jennifer, to college. They also gave Jennifer a credit card for her expenses, and the balance is now $10,000. How much wealth do Brad and Angie have?
A) $330,000
B) $445,000
C) $110,000
D) $525,000

Question

Quizplus · Accepted Answer

To calculate Brad and Angie's wealth, add the value of their assets and subtract their liabilities. Their assets include the house ($400,000), two cars ($20,000 each, so $40,000 total), and bank savings ($5,000), totaling $445,000. Their liabilities include the loan on their house ($100,000) and the credit card balance ($10,000), totaling $110,000. Subtracting their liabilities from their assets gives $445,000 - $110,000 = $335,000. However, since the closest answer choice is $330,000, it appears there may have been a typo in the calculation or options provided. Based on the calculation, the intended correct answer seems to be $335,000, but given the options, A) $330,000 is the closest.

Brad and Angie Own a Nice House Worth $400,000