To understand how Roberto's decision to use his investments to pay off his car loan affects the difference between his assets and liabilities, let's calculate the details step-by-step.
1. Initial Assets and Liabilities:
- Assets:
- Cash: \[tex]$1,800
- Investments: \$[/tex]6,200
- House: \[tex]$150,000
- Car: \$[/tex]8,000
- Liabilities:
- Credit Card: \[tex]$4,000
- Personal Loan: \$[/tex]1,000
- Mortgage: \[tex]$100,000
- Car Loan: \$[/tex]5,000
2. Calculating Initial Totals:
- Total Assets:
[tex]\[
1,800 + 6,200 + 150,000 + 8,000 = 166,000
\][/tex]
- Total Liabilities:
[tex]\[
4,000 + 1,000 + 100,000 + 5,000 = 110,000
\][/tex]
3. Initial Difference Between Assets and Liabilities:
- Difference Initial:
[tex]\[
166,000 - 110,000 = 56,000
\][/tex]
4. Roberto's Decision to Use Investments to Pay Off Car Loan:
- After using \[tex]$5,000 from his investments to pay off the car loan, the updated amounts are:
- Investments: \$[/tex]6,200 - \[tex]$5,000 = \$[/tex]1,200
- Car Loan: \[tex]$5,000 - \$[/tex]5,000 = \$0
5. Calculating New Totals:
- Total New Assets:
[tex]\[
1,800 + 1,200 + 150,000 + 8,000 = 161,000
\][/tex]
- Total New Liabilities:
[tex]\[
4,000 + 1,000 + 100,000 + 0 = 105,000
\][/tex]
6. New Difference Between Assets and Liabilities:
- Difference New:
[tex]\[
161,000 - 105,000 = 56,000
\][/tex]
7. Change in Difference:
- Change in Difference:
[tex]\[
56,000 - 56,000 = 0
\][/tex]
Thus, the difference between Roberto's assets and liabilities will remain the same after he uses his investments to pay off the car loan. The correct answer is:
The difference between the assets and the liabilities will remain the same.
