Connect with experts and get insightful answers on IDNLearn.com. Discover in-depth and trustworthy answers from our extensive network of knowledgeable professionals.
Sagot :
Let's analyze Roberto's assets and liabilities step-by-step to determine how the decision to use his investments to pay off his car loan will affect the difference between his assets and liabilities.
Step 1: Initial Totals
First, we sum up Roberto's initial assets and liabilities.
- Assets:
- Cash: [tex]$1,800 - Investments: $[/tex]6,200
- House: [tex]$150,000 - Car: $[/tex]8,000
Total initial assets:
[tex]\[ 1,800 + 6,200 + 150,000 + 8,000 = 166,000 \][/tex]
- Liabilities:
- Credit card: [tex]$4,000 - Personal loan: $[/tex]1,000
- Mortgage: [tex]$100,000 - Car loan: $[/tex]5,000
Total initial liabilities:
[tex]\[ 4,000 + 1,000 + 100,000 + 5,000 = 110,000 \][/tex]
- The initial difference (total assets - total liabilities):
[tex]\[ 166,000 - 110,000 = 56,000 \][/tex]
Step 2: After Paying Off the Car Loan
Roberto uses [tex]$5,000 from his investments to pay off his car loan. We need to update the values for investments and the car loan: - Assets (after paying off the car loan): - Cash: $[/tex]1,800
- Investments: [tex]$6,200 - $[/tex]5,000 = [tex]$1,200 - House: $[/tex]150,000
- Car: [tex]$8,000 Total new assets: \[ 1,800 + 1,200 + 150,000 + 8,000 = 161,000 \] - Liabilities (after paying off the car loan): - Credit card: $[/tex]4,000
- Personal loan: [tex]$1,000 - Mortgage: $[/tex]100,000
- Car loan: [tex]$5,000 - $[/tex]5,000 = [tex]$0 Total new liabilities: \[ 4,000 + 1,000 + 100,000 + 0 = 105,000 \] - The new difference (total new assets - total new liabilities): \[ 161,000 - 105,000 = 56,000 \] Step 3: Comparing the Differences - Initial difference between assets and liabilities: $[/tex]56,000
- New difference between assets and liabilities: $56,000
As seen, the difference between the assets and liabilities remains the same after Roberto uses his investments to pay off his car loan.
Thus, the correct conclusion is:
- The difference between the assets and the liabilities will remain the same.
Step 1: Initial Totals
First, we sum up Roberto's initial assets and liabilities.
- Assets:
- Cash: [tex]$1,800 - Investments: $[/tex]6,200
- House: [tex]$150,000 - Car: $[/tex]8,000
Total initial assets:
[tex]\[ 1,800 + 6,200 + 150,000 + 8,000 = 166,000 \][/tex]
- Liabilities:
- Credit card: [tex]$4,000 - Personal loan: $[/tex]1,000
- Mortgage: [tex]$100,000 - Car loan: $[/tex]5,000
Total initial liabilities:
[tex]\[ 4,000 + 1,000 + 100,000 + 5,000 = 110,000 \][/tex]
- The initial difference (total assets - total liabilities):
[tex]\[ 166,000 - 110,000 = 56,000 \][/tex]
Step 2: After Paying Off the Car Loan
Roberto uses [tex]$5,000 from his investments to pay off his car loan. We need to update the values for investments and the car loan: - Assets (after paying off the car loan): - Cash: $[/tex]1,800
- Investments: [tex]$6,200 - $[/tex]5,000 = [tex]$1,200 - House: $[/tex]150,000
- Car: [tex]$8,000 Total new assets: \[ 1,800 + 1,200 + 150,000 + 8,000 = 161,000 \] - Liabilities (after paying off the car loan): - Credit card: $[/tex]4,000
- Personal loan: [tex]$1,000 - Mortgage: $[/tex]100,000
- Car loan: [tex]$5,000 - $[/tex]5,000 = [tex]$0 Total new liabilities: \[ 4,000 + 1,000 + 100,000 + 0 = 105,000 \] - The new difference (total new assets - total new liabilities): \[ 161,000 - 105,000 = 56,000 \] Step 3: Comparing the Differences - Initial difference between assets and liabilities: $[/tex]56,000
- New difference between assets and liabilities: $56,000
As seen, the difference between the assets and liabilities remains the same after Roberto uses his investments to pay off his car loan.
Thus, the correct conclusion is:
- The difference between the assets and the liabilities will remain the same.
Thank you for participating in our discussion. We value every contribution. Keep sharing knowledge and helping others find the answers they need. Let's create a dynamic and informative learning environment together. Discover the answers you need at IDNLearn.com. Thank you for visiting, and we hope to see you again for more solutions.
