You have a car that is valued at $12,000. the balance that you owe on the car loan is $7,000. you lose your job and can not afford to make payments on your loan so you sell the car for $9,000 and pay off the loan. explain how your net worth is affected by your actions.

$2000

Step-by-step explanation:

The net worth of someone is defined as the difference of the assets you own and the debt you owe. The value of the car is $12000 and you sell it for $9000. The amount of money you owe on the care is $7000 and this is considered a debt. Therefore the total net worth is:

The reason for this, is that you have de-valued the car from $12000 to $9000. This will decrease your net worth by:

So instead of your net worh being $5000 it is now $2000.

2/3

step-by-step explanation: