Keisha owns a house worth $275,000 with a mortgage of $195,000. She owns a car worth $12,000 and has $7,500 in car loans. She has $3,000 in investments, $2,700 in a bank account, and owes $1,500 on a credit card. What is Keisha's net worth?

Keisha owns a house worth $275,000 with a mortgage of $195,000. She owns a car worth $12,000 and has $7,500 in car loans. She has $3,000 in investments, $2,700 in a bank account, and owes $1,500 on a credit card. What is Keisha's net worth?

• A. $89,000
• B. $88,700
• C. $90,000
• D. $87,000

Answer: (B)

Net worth is what you own minus what you owe. Add up all assets: 275,000 for the house, 12,000 for the car, 3,000 in investments, and 2,700 in the bank equals 292,700. Add up all liabilities: 195,000 mortgage, 7,500 car loans, and 1,500 on the credit card total 204,000. Subtract liabilities from assets: 292,700 minus 204,000 equals 88,700. Keisha’s net worth is $88,700.

Net worth is what you own minus what you owe. Add up all assets: 275,000 for the house, 12,000 for the car, 3,000 in investments, and 2,700 in the bank equals 292,700. Add up all liabilities: 195,000 mortgage, 7,500 car loans, and 1,500 on the credit card total 204,000. Subtract liabilities from assets: 292,700 minus 204,000 equals 88,700. Keisha’s net worth is $88,700.