Question

Chris has $8000 in a savings account, $5000 invested in the stock market, he owns a new laptop computer worth $1500, he has $12,000 left to pay on his student loans, and he has $700 outstanding credit card debt. What is Chris's total net worth?

Answer 1

$8,000 in savings = ASSET
$5,000 invested in stocks = ASSET
$1,500 laptop = ASSET

$12,000 in student loans = DEBT
$700 credit card debt = DEBT

Total amount of assets = $14,500
Total amount of debt = $12,700

$14,500 - $12,700 = $1,800

Chris's total net worth is $1,800.