Lucky Louie just inherited $50,000 from his great aunt, has $1,500 in his checking account, owns a car with a value of $8,000, and has $20,000 in his 401(k) at work. Louie owes $6,000 on his car, $12,000 on school loans and $3,000 on his credit card. What is Louie's net worth?

Question

Quizplus · Accepted Answer

Louie's net worth is the total value of his assets minus the total value of his liabilities. His assets are his cash, car, and 401(k), which total $50,000 + $8,000 + $20,000 = $78,000. His liabilities are his car loan, school loans, and credit card debt, which total $6,000 + $12,000 + $3,000 = $21,000. Therefore, his net worth is $78,000 - $21,000 = $57,000.

Lucky Louie Just Inherited $50,000 from His Great Aunt, Has