Question

6. Eve has $10,000 in a certificate of deposit account, as well as $600 in a checking account.

She has saved $3,000 in a retirement account and invested $2,000 in stocks. She has a $700
stereo system in her apartment and some jewelry worth around $300. She still owes $5,000 on
some student loans, as well as $3,000 on her car loan. She currently has a $550 credit card
balance. Identify Eve's assets and liabilities in the table below. Total up the amounts for each
category and then calculate her net worth. (8 points)

Answer 1

Assets:
1. Certificate of Deposit Account: $10,000
2. Checking Account: $600
3. Retirement Account: $3,000
4. Stocks: $2,000
5. Stereo System: $700
6. Jewelry: $300

Liabilities:
1. Student Loans: $5,000
2. Car Loan: $3,000
3. Credit Card Balance: $550

To calculate Eve's net worth, we need to subtract her liabilities from her assets:

Total Assets = $10,000 + $600 + $3,000 + $2,000 + $700 + $300 = $16,600
Total Liabilities = $5,000 + $3,000 + $550 = $8,550

Net Worth = Total Assets - Total Liabilities = $16,600 - $8,550 = $8,050

Therefore, Eve's net worth is $8,050.

✍

Answer 2

Assets Liabilities

---------------------------------------------------------

Certificate of deposit: $10,000 Student loans: $5,000

Checking account: $600 Car loan: $3,000

Retirement account: $3,000 Credit card balance: $550

Stocks: $2,000

Stereo system: $700

Jewelry: $300

Total assets: $16,600

Total liabilities: $8,550

Net worth = Total assets - Total liabilities

Net worth = $16,600 - $8,550

Net worth = $8,050