Use the table to answer the question. Assets Value Car $24,728 Savings account $3,589 Savings for retirement $15,600 Total Assets Liabilities Balance Owed Car loan $3,000 Credit card balance $762 Total Liabilities Net Worth Reena wants to put together a net worth statement to share with her bank as she applies for a small loan. Showing your work for each step, construct a net worth statement based on the information she has gathered in the table. What does this mean for Reena’s chances of getting a loan? (2 points)
Based on the information in the table, we can calculate Reena's net worth by subtracting her liabilities from her assets.
Total assets: Car + Savings account + Savings for retirement = $24,728 + $3,589 + $15,600 = $44,917
Total liabilities: Car loan + Credit card balance = $3,000 + $762 = $3,762
Net worth: Total assets - Total liabilities = $44,917 - $3,762 = $41,155
Reena's net worth is $41,155. This means that she has $41,155 worth of assets after considering her liabilities.
Since Reena has a positive net worth, it indicates that she has more assets than liabilities. This can be seen as a positive factor by the bank when evaluating her loan application. It shows that she has the ability to repay the loan and has some financial stability. Therefore, having a positive net worth increases Reena's chances of getting a loan.