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)
To construct a net worth statement, we need to calculate the total assets, total liabilities, and net worth.
Total Assets = Car value + Savings account + Savings for retirement
Total Assets = $24,728 + $3,589 + $15,600
Total Assets = $43,917
Total Liabilities = Car loan + Credit card balance
Total Liabilities = $3,000 + $762
Total Liabilities = $3,762
Net Worth = Total Assets - Total Liabilities
Net Worth = $43,917 - $3,762
Net Worth = $40,155
Reena's net worth is $40,155. This means that she has a positive net worth, which is likely to increase her chances of getting a loan. Having a positive net worth indicates that she has more assets than liabilities, which makes her a more financially stable borrower.