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
To calculate Reena's net worth, we need to subtract her liabilities from her total assets:
Total Assets:
Car = $24,728
Savings account = $3,589
Savings for retirement = $15,600
Total Liabilities:
Car loan = $3,000
Credit card balance = $762
Net Worth = Total Assets - Total Liabilities
Net Worth = ($24,728 + $3,589 + $15,600) - ($3,000 + $762)
Net Worth = $43,917 - $3,762
Net Worth = $40,155
Reena's net worth is $40,155.
Based on this information, having a positive net worth of $40,155 will likely increase Reena's chances of getting a loan. Having substantial assets and savings shows financial stability and the ability to repay the loan. However, other factors such as credit history and income will also be considered by the bank in determining the loan approval.