20
QuizMultiple Choice

Personal Net Worth — Quiz

Question 20 • Advanced Financial Algebra

What effect will making minimum payments on her student loans and credit card debt have on Anisha’s net worth?

Answer
A
Her debt will decrease.
B
Her net worth will stay the same.
C
Her debt will be reduced quickly.
D
Her net worth will decrease.

Explanation

Minimum payments reduce the outstanding balances on Anisha’s student loans and credit card debt, so her total debt decreases. Because debt is a liability, paying it down increases her net worth rather than decreasing it. The debt may decrease slowly, so “reduced quickly” is not necessarily true.

AI-written and checked against the verified answer.