the roth family has liquid assets of $10,000, use assets of $150,000 and investment assets of $34,000. they…

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 please select the best answer from the choices provided

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 please select the best answer from the choices provided

Answer

Explanation:

Step1: Calculate current total assets

$10000 + 150000+34000=$194000$

Step2: Calculate new total liabilities

$108000 + 7000=$115000$

Step3: Use net - worth formula

Net worth = Total assets - Total liabilities. Let the new total assets be $x$. We want a net worth of $100000$. So, $100000=x - 115000$. Solving for $x$, we get $x=100000 + 115000=$215000$.

Step4: Calculate asset increase

The current total assets are $194000$. The required total assets are $215000$. The increase in assets is $215000-194000=$21000$.

Answer:

C. $21,000$