Aperson has the following items on their balance sheet: student loan $12,000 car $10,000 government bonds $2,000 stocks $10,000 checking deposits $4,000 credit card debt $2,000 savings deposits $25,000 cash $1,000 this individual has net worth equal to

$38,000

Explanation:

To calculate the personal net worth, we must list all assets and all liabilities, estimate their monetary value, and then, substract total liabilities from total assets.

Assets                                       Liabilities

Govt bonds  $2,000                 Student loan $12,000

Stocks  $10,000                        Credit card debt $2,000

Checking deposits $4,000      Total liabilities = $14,000

Car $10,000

Savings deposits $25,000

Cash $1,000

Total Assets = $52,000

Personal net worth = total assets - total liabilities

                                = $52,000 - $14,000

                                = $38,000

This person's personal net worth is equal to 38 thousand dollars.

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