Tom and Sue had W-2 earnings of $100,000 last year. They deposited $5,000 into each of their IRAs from money that was in their checking account. They also sold their five year old car for $1,000 less than it was worth. Due to a slow down in the housing market, the value of their home decreased by $25,000. What is their change in net worth? a. No change b. Minus $19,000 c. Minus $26,000 d. Plus $9,000 e. Plus $74,000

Tom and Sue had W-2 earnings of $100,000 last year. They deposited $5,000 into each of their IRAs from money that was in their checking account. They also sold their five year old car for $1,000 less than it was worth. Due to a slow down in the housing market, the value of their home decreased by $25,000. What is their change in net worth? a. No change b. Minus $19,000 c. Minus $26,000 d. Plus $9,000 e. Plus $74,000

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter21: Financial Markets, Saving, And Investment

Section: Chapter Questions

Problem 7P

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