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

$21000

Step-by-step explanation:

Given : 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.

To Find : 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?

Solution :

Since The Roth family has liquid assets of $10,000, use assets of $150,000 and investment assets of $34,000.

So, their total assets = $10,000+$150,000 +$34,000. =$194,000

Also They also have liabilities totaling $108,000. If their total liabilities increase by $7,000 .

Then total liabilities = $108,000+$7,000=$115000

For their net worth to be 100,000, their assets have to be their liabilities (115,000)+100,000.  

Let x be the increase their assets in order to have a net worth of $100,000

⇒$194,000+x=(115,000)+100,000.  

⇒$194,000+x=215,000

⇒x=215,000-194,000

⇒x=21000

Thus Roth family need to increase $21000 in their assets in order to have a net worth of $100,000

assuming you mean addition: addition and subtraction are reverse operations.

step-by-step explanation: