Question
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? make it short
Net Worth Statement:
Total Assets: Car ($24,728) + Savings account ($3,589) + Savings for retirement ($15,600) = $44,917
Total Liabilities: Car loan ($3,000) + Credit card balance ($762) = $3,762
Net Worth = Total Assets - Total Liabilities
Net Worth = $44,917 - $3,762
Net Worth = $41,155
Reena's net worth is $41,155. This means that she has a positive net worth, indicating that her total assets are higher than her total liabilities. Having a positive net worth increases Reena's chances of getting a loan as it shows she has some financial stability and potential to make repayments.