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 calculate Reena's net worth, we need to subtract her liabilities from her assets.
The total value of her assets is the sum of the value of her car and savings for retirement:
$24,728 + $3,589 + $15,600 = $44,917
The total value of her liabilities is the sum of the balance owed for her car loan and credit card balance:
$3,000 + $762 = $3,762
Therefore, Reena's net worth is the difference between her total assets and total liabilities:
$44,917 - $3,762 = $41,155
Based on this net worth statement, Reena has a positive net worth of $41,155. This indicates that she has more assets than liabilities, which is generally a positive indicator for loan applications. It suggests that she has the ability to repay the loan and is in a financially stable position.