Net worth. Melanie's house is worth $125,000, but she still owes $78,422 on her mortgage. She has $21,236 in a savings account and $9,477 in credit card debt. She owes $6,131 to the credit union and figures that hers cars and other household items are worth a total of $15,000. What is Melanie's net worth?
125,000 + 21,236 + 15,000 - 78,400 - 9,477 - 6,131 = ?
To calculate Melanie's net worth, we need to add up her assets (things she owns that have value) and subtract her liabilities (debts she owes).
First, let's add up Melanie's assets:
- House worth: $125,000
- Savings account: $21,236
- Value of cars and household items: $15,000
Adding these up, we get: $125,000 + $21,236 + $15,000 = $161,236.
Next, let's calculate Melanie's liabilities:
- Mortgage owed: $78,422
- Credit card debt: $9,477
- Debt owed to credit union: $6,131
Adding these up, we get: $78,422 + $9,477 + $6,131 = $94,030.
Now, to find Melanie's net worth, we subtract her liabilities from her assets:
Net Worth = Assets - Liabilities
Net Worth = $161,236 - $94,030.
Calculating this, we get: $161,236 - $94,030 = $67,206.
Therefore, Melanie's net worth is $67,206.