Question

word problems are exercises in which the problem is set up in text, rather than presented in mathematical notation. many word problems tell a story. you must identify the elements of the math problem and solve it. there are many strategies for solving word problems. some of the common strategies include making a list or table; working backward; guessing, checking, and revising; and substituting simpler numbers to solve the problem. solve the following problem. lena chang, 23, lives alone in a rented apartment and earns $2,300 a month after taxes and payroll deductions. personal assets include $1,500 in a savings account, $2,000 in stocks, and some jewelry worth about $1,000. the largest asset is a car that could sell today for $10,000. lena still owes $15,000 on a student loan. monthly expenses include: $200 savings; $750 rent; $250 student loan payment; $250 utilities; $200 gas, car insurance, and registration; $230 groceries; $50 donations to a charity; $350 extras such as entertainment, eating out, and clothing. is lenas net worth statement positive or negative?

Explanation:

Step1: Calculate total assets

Add all of Lena's assets:
$\$1,500 + \$2,000 + \$1,000 + \$10,000 = \$14,500$

Step2: Identify total liabilities

Lena's only liability is the student loan:
$\$15,000$

Step3: Compute net worth

Net worth = Total Assets - Total Liabilities
$\$14,500 - \$15,000 = -\$500$

Step4: Determine net worth status

A negative value means net worth is negative.

Answer:

Lena's net worth statement is negative.