Home valued at $250,000 Mortgage balance of $150,000 Auto worth $25,000 $15,000 auto loan New household furnishings valued at $5,000 $4.500 loan for furniture Retirement account of $45,000 $1,500 in emergency savings $500 in checking $1500 in a CD $15,000 credit cards balances $500 per month for student loans; current balance is $25,000 $100 per month gym membership Using the information above, respond to all of the following: Determine this individual's net worth. Explain. Identify any expenses that are not liabilities. Assume this individual decides to create a budget. What are the two components of a budget? Assume this individual's friend decides to pursue postsecondary education. What are two types of financial aid that the friend could apply for that do not have to be repaid?
Home valued at $250,000 Mortgage balance of $150,000 Auto worth $25,000 $15,000 auto loan New household furnishings valued at $5,000 $4.500 loan for furniture Retirement account of $45,000 $1,500 in emergency savings $500 in checking $1500 in a CD $15,000 credit cards balances $500 per month for student loans; current balance is $25,000 $100 per month gym membership Using the information above, respond to all of the following: Determine this individual's net worth. Explain. Identify any expenses that are not liabilities. Assume this individual decides to create a budget. What are the two components of a budget? Assume this individual's friend decides to pursue postsecondary education. What are two types of financial aid that the friend could apply for that do not have to be repaid?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
- Home valued at $250,000
- Mortgage balance of $150,000
- Auto worth $25,000
- $15,000 auto loan
- New household furnishings valued at $5,000
- $4.500 loan for furniture
- Retirement account of $45,000
- $1,500 in emergency savings
- $500 in checking
- $1500 in a CD
- $15,000 credit cards balances
- $500 per month for student loans; current balance is $25,000
- $100 per month gym membership
Using the information above, respond to all of the following:
- Determine this individual's net worth. Explain.
- Identify any expenses that are not liabilities.
- Assume this individual decides to create a budget. What are the two components of a budget?
- Assume this individual's friend decides to pursue postsecondary education. What are two types of financial aid that the friend could apply for that do not have to be repaid?
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