The Roth family has liquid assets of $10,000, use assets of $150,000 and investment assets of $34,000. They also have liabilities totaling $108,000. If their total liabilities increase by $7,000 over the next year, by how much would the Roth family need to increase their assets in order to have a net worth of $100,000?
a.
$7,000
b.
$14,000
c.
$21,000
d.
$28,000

Question

The Roth family has liquid assets of $10,000, use assets of $150,000 and investment assets of $34,000. They also have liabilities totaling $108,000. If their total liabilities increase by $7,000 over the next year, by how much would the Roth family need to increase their assets in order to have a net worth of $100,000?
a.
$7,000
b.
$14,000
c.
$21,000
d.
$28,000

pixiedust1 · Answer

Okay, so first, we add up the assets.  They have 10,000+150,000+34,000
How much would that equal?

anonymous · Answer

354000 @PixieDust1

pixiedust1 · Answer

Can you tell me how you got that?

anonymous · Answer

i added them up? @PixieDust1

pixiedust1 · Answer

Okay, i mean like, what numbers did you add?  i'm not totaling that amount

pixiedust1 · Answer

Okay, I think I know what happened.  Don't include liabilities in this.  Liabilities is debt.  We just want assets :)
When you add up all the assets, it comes to $194,000

pixiedust1 · Answer

Now, we add up the liabilities which are 108,000.  Plus, 7000 are added next year.  So, 108,000+7000=115,000

pixiedust1 · Answer

So, when you subtract the liabilites from the assets, 
194,000-115,000=79,000 net worth

So basically, they have $79000 in assets after debt.  But, they wanted $100,000.

So, how much money would they need to add to get $79,000 up to $100,000?

pixiedust1 · Answer

The answer is $21,000
$79000+$21000=$100,000
So, they need to add $21,000 to get their assets up to $100,000 after they've paid their liabilities.