1. Estimatint Net Worth. Mia has $3000 in assets, a finance company loan for $500, and...

1. Estimatint Net Worth. Mia has $3000 in assets, a finance company loan for $500, and an outstanding credit card balance of $135. Mia‘s monthly cash inflows are $2000, and she has monthly expenses of $1650. What is Mia‘s net worth? ( Round to Nearest Dollar)

2. estimating net worth. At the beginning of the year Lakynn had a net worth of 4500. During the year she set aside $80 per month from her paycheque for savings. In December, she made a $600 payment for a plane ticket. What was her net worth at the end of the year? (Round to Nearest Dollar)

Please Help me with these 2 questions. i dont entirely inderstand how to do these yet.

Solutions

Expert Solution

Net worth = Assets – (loan + Credit card balance)

= 3,000 – (500 + 135)

= 3,000 – 635

= $2,365

Note: cash inflows and expenses are not to be considered, since these constitute a part of net worth already included in above calculation.

Net worth = Beginning – Savings – Expenses

= 4,500 – (80 × 12) – 600

= 4,500 – 960 – 600

= $2,940 (Answer)

ekkarill92 answered 1 year ago

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