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 the total balance owed on her liabilities.
Total assets = Car value + Savings account + Savings for retirement
Total assets = $24,728 + $3,589 + $15,600 = $43,917
Total liabilities = Car loan + Credit card balance
Total liabilities = $3,000 + $762 = $3,762
Net worth = Total assets - Total liabilities
Net worth = $43,917 - $3,762 = $40,155
Reena's net worth is $40,155.
Based on this net worth and the information provided, it seems like Reena has a good chance of getting a loan. She has a significant amount of assets compared to her liabilities, indicating financial stability and the ability to repay the loan.