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Which of the following modifications to the list of assets and liabilities below would result in a net worth of $100,000?

Recreational Vehicle valued at $110,000.

Car valued at $27,000.

Medical bills totaling $8,700.

Loan balance of $80,000.

Savings of $5,000.

Retirement fund of $50,000.

Credit card balance of $2,300.

a.

recreational vehicle value decreasing to $100,000

b.

borrowing $10,000 more in loans

c.

withdrawing $20,000 from the retirement fund

d.

adding $1,000 in credit card debt

Verified Answer :

petahpham

This is super late, but the correct answer is D.

The correct answer is:

D) adding $1,000 in credit card debt

Explanation:

Their current net worth is $101,000.  

Adding the recreational vehicle's worth to the car's worth, we have

110000+27000 = 137000

Taking the medical bills away from the net worth, we have

137000-8700 = 128300

Taking the loan balance away from the net worth, we have

128300-80000 = 48300

Adding the savings to the net worth, we have

48300+5000 = 53300

Adding the retirement funds to the net worth, we have

53000+50000 = 103300

Taking away the credit card balance from the net worth, we have

103300-2300 = 101000

To make this $100,000, we take $1000 away from it.  This means option D is correct.

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