Katherine Kocher has determined the following information about her own financial situation. Her checking account is worth $850 and her savings account is worth $1,200. She owns her own home that has a market value of $98,000. She has furniture and appliances worth $12,000 and a home computer and laptop worth $3,300. She has a car worth $12,500. She has recently purchased a 2-year certificate of deposit worth $5,500 and she has a retirement account worth $38,550. What is the value of her liquid assets?

Question

Quizplus · Accepted Answer

Liquid assets are those that can be easily converted into cash. These include checking and savings accounts, certificates of deposit, and retirement accounts. Therefore, the value of Katherine's liquid assets would be:
$850 (checking account) + $1,200 (savings account) + $5,500 (certificate of deposit) + $38,550 (retirement account) = $46,100
Therefore, the best choice is A, $2,050, as none of the other choices match the calculated value of the liquid assets.

Katherine Kocher Has Determined the Following Information About Her Own