Which of the following modifications to the list of assets and liabilities below would result in a net worth of $100,000?Recreational Vehicle valued at $110,000.Car valued at $27,000.Medical bills totaling $8,700.Loan balance of $80,000.Savings of $5,000.Retirement fund of $50,000.Credit card balance of $2,300.
Answer
A
recreational vehicle value decreasing to $100,000
B
borrowing $10,000 more in loans
C
withdrawing $20,000 from the retirement fund
D
adding $1,000 in credit card debt
Explanation
The listed assets total $192,000: $110,000 + $27,000 + $5,000 + $50,000. The liabilities total $91,000: $8,700 + $80,000 + $2,300, so current net worth is $101,000. Adding $1,000 in credit card debt raises liabilities to $92,000 and lowers net worth to $100,000, so the correct choice is adding $1,000 in credit card debt.
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