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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 Assets & \multicolumn{2}{|c|}{Liabilities} \\
\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
\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 :

GinnyAnswer
To determine how much Rosetta should receive after selling her house and paying off the mortgage, let's break down the problem step-by-step.

1. Determine the value of Rosetta's house:
- The house is valued at \[tex]$150,000. 2. Determine the outstanding mortgage loan: - The mortgage loan amounts to \$[/tex]100,000.

3. Calculate the amount Rosetta should receive after paying off the mortgage:
- Subtract the mortgage loan amount from the house value.

[tex]\[ \text{Amount received} = \text{House value} - \text{Mortgage loan} \][/tex]

[tex]\[ \text{Amount received} = \$150,000 - \$100,000 \][/tex]

[tex]\[ \text{Amount received} = \$50,000 \][/tex]

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

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