Jasmine Smith owns a condo worth $240,000, a car valued at $25,000, and miscellaneous assets worth $7,500. She owes $185,000 on the condo and $15,000 on the car and has no other debts. Her retirement account, in which she is fully vested, contains $27,500 in mutual funds. She is insured with a $500,000 term life insurance policy. What is her net worth?

Question

Quizplus · Accepted Answer

Jasmine's net worth is calculated by subtracting her liabilities from her assets. Her total assets are $240,000 (condo) + $25,000 (car) + $7,500 (miscellaneous) + $27,500 (retirement) = $300,000. Her total liabilities are $185,000 (condo loan) + $15,000 (car loan) = $200,000. Therefore, her net worth is $300,000 - $200,000 = $100,000. The life insurance policy is not included in net worth calculations.

Jasmine Smith Owns a Condo Worth $240,000, a Car Valued