Question

Assume you have a car worth $3,200 and investments worth another $7,500. of you owe $1,300 on credit cards and that is your only debt, how mush is your net worth?

Answer 1

Net worth is calculated by adding all of your assets together and then subtracting your total amount of debt. In this case, your net worth are the items you own and how much value they are worth. The car ($3200) and the investments ($7500) added together make a total of $10700. Your total debts are $1300 from your credit cards. Subtracting debts from assets ($10700 - $1300) you have a total net worth of $9400.