SOLUTION: Problem is on page 30 number 104 Net Worth - Melanie's house is worth $125,000, but she still owes $78,000 on her mortgage. She has $21,236 in a savings account and has $9,477

Question 145446This question is from textbook Elementary and Intermediate Algebra
: Problem is on page 30 number 104
Net Worth - Melanie's house is worth $125,000, but she still owes $78,000 on her mortgage. She has $21,236 in a savings account and has $9,477 in credit card debt. She owes $6,311 to the credit union and figures that her cars and other household items are worth a total of $15,000. What is Melanie's net worth?
I know how to solve this problem, but do I put the $15,000 amount with assets or with debts?This question is from textbook Elementary and Intermediate Algebra

Answer by 24HoursTutor.com(40) (Show Source):
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To solve such questions it is always wise to make a table out of the debts and credits. Debts are like loans, payments which have yet to be made while assets are the amount of money or property that you already possess. So, in this case :
Debts
Mortgage : $78,000/-
Credit Card : $ 9,477/-
Credit Union: $ 6,311/-
Total : $93,788 /-
Assets
Melanie's House : $125,000/-
Savings Account : $ 21,236/-
Car and Household Items : $ 15,000/-
Total : $161,236/-
Net Worth = Assets - Debt
= 161,236 - 93,788
= 67,448
Ans : Melanie's net worth is $ 67,448/-
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