roberto listed his assets and liabilities on a personal balance sheet.\nrobertos balance sheet (september…

roberto listed his assets and liabilities on a personal balance sheet.\nrobertos balance sheet (september 2013)\n|assets| |liabilities| |\n|--|--|--|--|\n|cash|$1,800|credit card|$4,000|\n|investments|$6,200|personal loan|$1,000|\n|house|$150,000|mortgage|$100,000|\n|car|$8,000|car loan|$5,000|\n|total| |total| |\nafter creating the balance sheet, roberto decided to use his investments to pay off his car loan. how will that decision affect the difference between his assets and liabilities?\nit will make the assets $5,000 less than the liabilities.\nit will make the assets $5,000 more than the liabilities.\nthe difference between the assets and the liabilities will remain the same.\nthe difference between the assets and the liabilities cannot be compared.

roberto listed his assets and liabilities on a personal balance sheet.\nrobertos balance sheet (september 2013)\n|assets| |liabilities| |\n|--|--|--|--|\n|cash|$1,800|credit card|$4,000|\n|investments|$6,200|personal loan|$1,000|\n|house|$150,000|mortgage|$100,000|\n|car|$8,000|car loan|$5,000|\n|total| |total| |\nafter creating the balance sheet, roberto decided to use his investments to pay off his car loan. how will that decision affect the difference between his assets and liabilities?\nit will make the assets $5,000 less than the liabilities.\nit will make the assets $5,000 more than the liabilities.\nthe difference between the assets and the liabilities will remain the same.\nthe difference between the assets and the liabilities cannot be compared.

Answer

Explanation:

Step1: Calculate initial total assets

$1800 + 6200+150000 + 8000=166000$

Step2: Calculate initial total liabilities

$4000+1000 + 100000+5000=110000$

Step3: Calculate initial difference

$166000 - 110000 = 56000$

Step4: Calculate new total assets after paying car - loan

Investments are used to pay off car - loan. New assets: $166000-5000 = 161000$

Step5: Calculate new total liabilities after paying car - loan

New liabilities: $110000-5000 = 105000$

Step6: Calculate new difference

$161000 - 105000=56000$

Answer:

The difference between the assets and the liabilities will remain the same.