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 A B C D

c. $21,000

Explanation:

To get the Roth family net worth, we would have to subtract their liabilities from the total of their assets.

Assets

$10,000+$34,000+$150,000 = $194,000

Subtract Liabilities

$194,000 - $108,000 = $86,000

Liabilities are scheduled to increase by $7,000 over the next year so we subtract from the net worth.

$86,000 - $7,000 = $79,000

To get to $100,000 from $79,000 they would need to make the difference of the 2 sums which would be,

$100,000-$79,000

= $21,000

They would need a $21,000 increase in assets in order to reach a net worth of $100,000.