First, let's understand Roberto's initial financial situation by calculating his total assets and total liabilities:
Assets:
- Cash: \[tex]$1,800
- Investments: \$[/tex]6,200
- House: \[tex]$150,000
- Car: \$[/tex]8,000
Total Assets = \[tex]$1,800 + \$[/tex]6,200 + \[tex]$150,000 + \$[/tex]8,000 = \[tex]$166,000
Liabilities:
- Credit Card: \$[/tex]4,000
- Personal Loan: \[tex]$1,000
- Mortgage: \$[/tex]100,000
- Car Loan: \[tex]$5,000
Total Liabilities = \$[/tex]4,000 + \[tex]$1,000 + \$[/tex]100,000 + \[tex]$5,000 = \$[/tex]110,000
Net Worth (Initial):
Net Worth = Total Assets - Total Liabilities
Net Worth (Initial) = \[tex]$166,000 - \$[/tex]110,000 = \[tex]$56,000
Next, Roberto decides to use his investments to pay off his car loan. This decision will affect his assets and liabilities as follows:
Assets:
- Cash remains \$[/tex]1,800
- Investments decrease by \[tex]$5,000 (since he uses it to pay the car loan)
New Investments = \$[/tex]6,200 - \[tex]$5,000 = \$[/tex]1,200
- House remains \[tex]$150,000
- Car remains \$[/tex]8,000
New Total Assets = \[tex]$1,800 + \$[/tex]1,200 + \[tex]$150,000 + \$[/tex]8,000 = \[tex]$161,000
Liabilities:
- Credit Card remains \$[/tex]4,000
- Personal Loan remains \[tex]$1,000
- Mortgage remains \$[/tex]100,000
- Car Loan is paid off, so it becomes \[tex]$0
New Total Liabilities = \$[/tex]4,000 + \[tex]$1,000 + \$[/tex]100,000 + \[tex]$0 = \$[/tex]105,000
Net Worth (Final):
Net Worth = Total Assets - Total Liabilities
Net Worth (Final) = \[tex]$161,000 - \$[/tex]105,000 = \[tex]$56,000
Finally, let's compare the initial and final net worth:
Change in Net Worth = Net Worth (Final) - Net Worth (Initial)
Change in Net Worth = \$[/tex]56,000 - \[tex]$56,000 = \$[/tex]0
Thus, the difference between Roberto's assets and liabilities remains the same.
Therefore, the answer to the question is:
"The difference between the assets and the liabilities will remain the same."
