Mike and Mary Jane Lee have a yearly income of $84 comma 715 and own a house worth $123 comma 700 , two cars worth a total of $ 23 comma 157 and furniture worth $13 comma 825. The house has a mortgage of $66 comma 250 and the cars have outstanding loans of $2 comma 793 each. Utility bills, totaling $215 for this month, have not been paid. Calculate or use Worksheet 4 to determine their net worth and explain what it means. How would the Lees' age affect your assessment of their net worth?

Question

Cara Novak

Business

22 July, 05:28

Mike and Mary Jane Lee have a yearly income of $84 comma 715 and own a house worth $123 comma 700 , two cars worth a total of $ 23 comma 157 and furniture worth $13 comma 825. The house has a mortgage of $66 comma 250 and the cars have outstanding loans of $2 comma 793 each. Utility bills, totaling $215 for this month, have not been paid. Calculate or use Worksheet 4 to determine their net worth and explain what it means. How would the Lees' age affect your assessment of their net worth?

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Answers (1)

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Jazlynn Singh · Answer 1

Net worth: $88,631

Lee's age has no effect on Net worth Assessment.

Explanation:

Question 1: Using calculation, determine mike and Jane lee's net worth

The formula for net worth = Total Asses - Total Liabilities

Particulars Amount

Assets

House $123,700

Cars $23,157

Furniture $13,825

Total Assets $160,682

Liabilities

Utility Bills $215

Housing Loans $66,250

Car loans (2,793 x 2) $5,586

Total Liabilities $72,051

Net worth = $160,682 - $72,051 = $88,631

The meaning of the net worth is that even if Mike and Mary Jane decides to sell all assets and pay off all obligations, they will still have $88,631 as cash for themselves

B part) Lee's age has no effect on the assessment of the net worth, it is not required for any part of the computation.