Answer :
Let's go through the given data step-by-step to determine the correct statement about the assets and liabilities of the Chang family from 2007 to 2008.
### 1. Calculating Assets:
For 2007:
- Home Value: \$315,000
- Car Value: \$10,000
- Savings: \$2,000
Total Assets in 2007 = Home Value + Car Value + Savings
[tex]\[ \text{Total Assets in 2007} = \[tex]$315,000 + \$[/tex]10,000 + \[tex]$2,000 = \$[/tex]327,000 \][/tex]
For 2008:
- Home Value: \$325,000
- Car Value: \$6,000
Total Assets in 2008 = Home Value + Car Value
[tex]\[ \text{Total Assets in 2008} = \[tex]$325,000 + \$[/tex]6,000 = \$331,000 \][/tex]
### 2. Calculating Liabilities:
For 2007:
- Mortgage: \$265,000
- Car Loan: \$5,000
Total Liabilities in 2007 = Mortgage + Car Loan
[tex]\[ \text{Total Liabilities in 2007} = \[tex]$265,000 + \$[/tex]5,000 = \$270,000 \][/tex]
For 2008:
- Mortgage: \$240,000
- Car Loan: \$1,000
- Credit Card Debt: \$1,500
Total Liabilities in 2008 = Mortgage + Car Loan + Credit Card Debt
[tex]\[ \text{Total Liabilities in 2008} = \[tex]$240,000 + \$[/tex]1,000 + \[tex]$1,500 = \$[/tex]242,500 \][/tex]
### 3. Comparing the Years:
#### Assets:
- Total Assets in 2007: \$327,000
- Total Assets in 2008: \$331,000
Since \[tex]$331,000 (2008) > \$[/tex]327,000 (2007), assets increased from 2007 to 2008.
#### Liabilities:
- Total Liabilities in 2007: \$270,000
- Total Liabilities in 2008: \$242,500
Since \[tex]$242,500 (2008) < \$[/tex]270,000 (2007), liabilities decreased from 2007 to 2008.
### Conclusion:
From 2007 to 2008, the Chang family's assets increased and their liabilities decreased. Therefore, the most accurate statement based on this information is:
d. From 2007 to 2008, assets increased and liabilities decreased.
### 1. Calculating Assets:
For 2007:
- Home Value: \$315,000
- Car Value: \$10,000
- Savings: \$2,000
Total Assets in 2007 = Home Value + Car Value + Savings
[tex]\[ \text{Total Assets in 2007} = \[tex]$315,000 + \$[/tex]10,000 + \[tex]$2,000 = \$[/tex]327,000 \][/tex]
For 2008:
- Home Value: \$325,000
- Car Value: \$6,000
Total Assets in 2008 = Home Value + Car Value
[tex]\[ \text{Total Assets in 2008} = \[tex]$325,000 + \$[/tex]6,000 = \$331,000 \][/tex]
### 2. Calculating Liabilities:
For 2007:
- Mortgage: \$265,000
- Car Loan: \$5,000
Total Liabilities in 2007 = Mortgage + Car Loan
[tex]\[ \text{Total Liabilities in 2007} = \[tex]$265,000 + \$[/tex]5,000 = \$270,000 \][/tex]
For 2008:
- Mortgage: \$240,000
- Car Loan: \$1,000
- Credit Card Debt: \$1,500
Total Liabilities in 2008 = Mortgage + Car Loan + Credit Card Debt
[tex]\[ \text{Total Liabilities in 2008} = \[tex]$240,000 + \$[/tex]1,000 + \[tex]$1,500 = \$[/tex]242,500 \][/tex]
### 3. Comparing the Years:
#### Assets:
- Total Assets in 2007: \$327,000
- Total Assets in 2008: \$331,000
Since \[tex]$331,000 (2008) > \$[/tex]327,000 (2007), assets increased from 2007 to 2008.
#### Liabilities:
- Total Liabilities in 2007: \$270,000
- Total Liabilities in 2008: \$242,500
Since \[tex]$242,500 (2008) < \$[/tex]270,000 (2007), liabilities decreased from 2007 to 2008.
### Conclusion:
From 2007 to 2008, the Chang family's assets increased and their liabilities decreased. Therefore, the most accurate statement based on this information is:
d. From 2007 to 2008, assets increased and liabilities decreased.
