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Skye listed her assets and liabilities on a personal balance sheet.

\begin{tabular}{|c|c|c|c|}
\hline \multicolumn{4}{|c|}{ Skye's Balance Sheet (April 2013) } \\
\hline \multicolumn{2}{|c|}{ Assets } & \multicolumn{2}{|c|}{ Liabilities } \\
\hline cash & [tex]$\$[/tex] 1,000[tex]$ & credit card & $[/tex]\[tex]$ 4,000$[/tex] \\
\hline investments & [tex]$\$[/tex] 1,000[tex]$ & student loan & $[/tex]\[tex]$ 1,000$[/tex] \\
\hline house & [tex]$\$[/tex] 200,000[tex]$ & mortgage & $[/tex]\[tex]$ 100,000$[/tex] \\
\hline car & [tex]$\$[/tex] 8,000[tex]$ & car loan & $[/tex]\[tex]$ 5,000$[/tex] \\
\hline Total & ??? & Total & ??? \\
\hline \multicolumn{4}{|c|}{ Net Worth: ??? } \\
\hline
\end{tabular}

What is Skye's net worth?

A. [tex]$\$[/tex] 100,000[tex]$
B. $[/tex]\[tex]$ 110,000$[/tex]
C. [tex]$\$[/tex] 210,000[tex]$
D. $[/tex]\[tex]$ 320,000$[/tex]



Answer :

GinnyAnswer
To determine Skye's net worth, we need to follow these steps:

1. Sum Up Skye's Assets:
- Cash: [tex]\( \$1,000 \)[/tex]
- Investments: [tex]\( \$1,000 \)[/tex]
- House: [tex]\( \$200,000 \)[/tex]
- Car: [tex]\( \$8,000 \)[/tex]

Adding these together gives us the total assets:
[tex]\[ 1,000 + 1,000 + 200,000 + 8,000 = 210,000 \][/tex]

Therefore, Skye's total assets are [tex]\( \$210,000 \)[/tex].

2. Sum Up Skye's Liabilities:
- Credit card debt: [tex]\( \$4,000 \)[/tex]
- Student loan: [tex]\( \$1,000 \)[/tex]
- Mortgage: [tex]\( \$100,000 \)[/tex]
- Car loan: [tex]\( \$5,000 \)[/tex]

Adding these together gives us the total liabilities:
[tex]\[ 4,000 + 1,000 + 100,000 + 5,000 = 110,000 \][/tex]

Therefore, Skye's total liabilities are [tex]\( \$110,000 \)[/tex].

3. Calculate Skye's Net Worth:
Net worth is calculated by subtracting total liabilities from total assets:
[tex]\[ 210,000 - 110,000 = 100,000 \][/tex]

Therefore, Skye's net worth is [tex]\( \$100,000 \)[/tex].

Based on this calculation, the correct answer is:
[tex]\[ \$100,000 \][/tex]

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