7
AssignmentMultiple Choice

Understanding Net Worth

Question 7 • Personal Finance - EL3403

Lana owns a house worth $325,000 and has a mortgage of $245,000. She owns a guitar worth $750. She also owns a car worth $15,000 and has $9,000 in car loans. She has $8,000 in stock investments and $2,100 in a savings account. What is Lana’s net worth?

Answer
A
$83,750
B
$96,850
C
$254,000
D
$350,850

Explanation

Add Lana’s assets: $325,000 + $750 + $15,000 + $8,000 + $2,100 = $350,850. Add her debts: $245,000 + $9,000 = $254,000. Net worth is assets minus debts: $350,850 − $254,000 = $96,850, so the correct choice is $96,850.

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