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 value of Reena's assets and liabilities.
Total Assets: $24,728 (Car) + $3,589 (Savings account) + $15,600 (Savings for retirement) = $43,917
Total Liabilities: $3,000 (Car loan) + $762 (Credit card balance) = $3,762
Net Worth: Total Assets - Total Liabilities = $43,917 - $3,762 = $40,155
Reena's chances of getting a loan are good because she has a positive net worth of $40,155. This means that her total assets exceed her total liabilities, indicating that she has some financial stability and assets that can be used as collateral for the loan.