Garth's Net Worth Calculation
Garth's Assets and Liabilities
Garth’s home entertainment system is worth about $1,200. He also owns some sports equipment valued at $300 and has $950 in a savings account. Garth owes one more payment of $50 on his entertainment system.
What is Garth’s net worth?
Your answer
Answer:
$2,400
Explanation:
An individual's net worth is calculated by adding the value of everything they own including cash, and then subtracting what they owe. Therefore, based on the values provided we can sum the individual values of the entertainment system, sporting equipment, and savings account balance and then subtract the remaining payment that needs to be made for the entertainment system. This would give us Garth's net worth.
$1,200 + $300 + $950 - $50 = $2,400
Therefore, Garth's net worth is $2,400
Final answer:
Garth's net worth is calculated by adding the value of his assets and then subtracting his liabilities. In this case, Garth's assets total $2,450, and his liabilities are $50. Therefore, Garth's net worth is $2,400.
Explanation:
To calculate Garth’s net worth, we need to consider all his assets (what he owns) and subtract any liabilities (what he owes). First, let’s add up the value of all his assets:
- Home entertainment system: $1,200
- Sports equipment: $300
- Savings account: $950
Now, we will combine these values to find the total assets:
$1,200 + $300 + $950 = $2,450
Next, we account for Garth’s liabilities, which is the remaining payment on the entertainment system:
- Remaining payment on entertainment system: $50
His total liabilities are: $50. To find Garth’s net worth, we subtract his total liabilities from his total assets:
Net worth = Total assets - Total liabilities
Net worth = $2,450 - $50
Net worth = $2,400