To determine the correct option, let's analyse the assets and liabilities of the Chang family in both 2007 and 2008.
First, let's calculate the total assets for each year:
2007:
- Home value: \[tex]$315,000
- Car value: \$[/tex]10,000
- Savings: \[tex]$2,000
Total assets for 2007 = \$[/tex]315,000 + \[tex]$10,000 + \$[/tex]2,000 = \[tex]$327,000
2008:
- Home value: \$[/tex]325,000
- Car value: \[tex]$6,000
Total assets for 2008 = \$[/tex]325,000 + \[tex]$6,000 = \$[/tex]331,000
Now, let's calculate the total liabilities for each year:
2007:
- Mortgage: \[tex]$265,000
- Car loan: \$[/tex]5,000
Total liabilities for 2007 = \[tex]$265,000 + \$[/tex]5,000 = \[tex]$270,000
2008:
- Mortgage: \$[/tex]240,000
- Car loan: \[tex]$1,000
- Credit card debt: \$[/tex]1,500
Total liabilities for 2008 = \[tex]$240,000 + \$[/tex]1,000 + \[tex]$1,500 = \$[/tex]242,500
Now let’s compare the total assets and liabilities from 2007 to 2008:
- Total assets increased from \[tex]$327,000 in 2007 to \$[/tex]331,000 in 2008.
- Total liabilities decreased from \[tex]$270,000 in 2007 to \$[/tex]242,500 in 2008.
Based on this analysis:
The correct statement is:
d. From 2007 to 2008, assets increased and liabilities decreased.
So, the answer is:
d. From 2007 to 2008, assets increased and liabilities decreased.
