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

\begin{tabular}{|c|c|c|c|}
\hline \multicolumn{3}{|c|}{ Rosetta's Balance Sheet (April 2013) } \\
\hline cash & [tex]$\$[/tex] 900[tex]$ & credit card & $[/tex]\[tex]$ 4,000$[/tex] \\
\hline investments & [tex]$\$[/tex] 1,100[tex]$ & student loan & $[/tex]\[tex]$ 2,000$[/tex] \\
\hline house & [tex]$\$[/tex] 150,000[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 \hline
\end{tabular}

If Rosetta sells her house and pays off the mortgage, how much should she receive (assuming there are no other costs associated with selling the house)?

A. [tex]$\$[/tex] 42,000[tex]$

B. $[/tex]\[tex]$ 50,000$[/tex]

C. [tex]$\$[/tex] 52,000[tex]$

D. $[/tex]\[tex]$ 60,000$[/tex]



Answer :

To determine how much Rosetta should receive after selling her house and paying off the mortgage, let's break down the relevant figures from her balance sheet.

1. House Value: The value of Rosetta's house is listed as \[tex]$150,000. 2. Mortgage: The outstanding mortgage amount is listed as \$[/tex]100,000.

When Rosetta sells her house, she will get the value of the house, which is \[tex]$150,000. However, she needs to use part of this amount to pay off the remaining mortgage, which is \$[/tex]100,000.

The amount she will receive after paying off the mortgage is calculated by subtracting the mortgage amount from the house value:
[tex]\[ \text{Amount to be received} = \text{House Value} - \text{Mortgage} \][/tex]
[tex]\[ \text{Amount to be received} = \$150,000 - \$100,000 \][/tex]
[tex]\[ \text{Amount to be received} = \$50,000 \][/tex]

Therefore, after selling her house and paying off the mortgage, Rosetta should receive \$50,000. The correct answer is:
[tex]\[ \boxed{50,000} \][/tex]