To determine the change in the assets and liabilities of the Smith family from 2005 to 2009, we need to calculate the total value of their assets and the total value of their liabilities for both years and then compare.
### Calculation of Assets
Assets in 2005:
- Home: [tex]$200,000
- Car: $[/tex]25,000
Total assets in 2005:
[tex]\[ 200,000 + 25,000 = 225,000 \][/tex]
Assets in 2009:
- Home: [tex]$180,000
- Car: $[/tex]18,000
- Boat: [tex]$20,000
Total assets in 2009:
\[ 180,000 + 18,000 + 20,000 = 218,000 \]
### Calculation of Liabilities
Liabilities in 2005:
- Mortgage: $[/tex]30,000
- Car loan: [tex]$8,000
Total liabilities in 2005:
\[ 30,000 + 8,000 = 38,000 \]
Liabilities in 2009:
- Home equity loan: $[/tex]18,000
- Personal loan: [tex]$5,000
Total liabilities in 2009:
\[ 18,000 + 5,000 = 23,000 \]
### Differences and Trend Analysis
- Difference in assets:
\[ 218,000 - 225,000 = -7,000 \]
(Assets decreased by $[/tex]7,000)
- Difference in liabilities:
[tex]\[ 23,000 - 38,000 = -15,000 \][/tex]
(Liabilities decreased by $15,000)
### Conclusion
From 2005 to 2009, both assets and liabilities decreased. Therefore, the correct statement is:
"From 2005 to 2009, both assets and liabilities decreased."
Thus, the best answer is:
From 2005 to 2009, both assets and liabilities decreased.
