Question

As a student you owe a car (worth R60 000,), cellphone (R2000) and second hand fridge...

As a student you owe a car (worth R60 000,), cellphone (R2000) and second hand fridge (R1500). You owe R4500 on the car and R1000 on the fridge. Your phone was a present from your parents. You get month income from you parents of R5000 and your expenditure is R5200 per month. Calculate your net worth and personal income?

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Answer #1

1. Net worth is the value of the assets a person or corporation owns, minus the liabilities they owe.

2. Personal income is the amount of money collectively received by the inhabitants of a country. Sources of personal income include money earned from employment, dividends and distributions paid by investments, rents derived from property ownership, and profit sharing from businesses.

1. Net worth of student:

Assets:

Car = R60,000

Cellphone = R 2000

secondhand Fridge = R1500

Total Assets = R 63500

Liabilities:

Owe on Car = R4500

Owe on fridge = R1000

Total Liabilities is = R5500

Therefore, Net worth is = Assets - Liabilities = R63500 - R5500 = R58000

2. Personal Income of Student:

Income Received from parents = R5000

Expenditure per month is = R5200

Therefore, Net Personal Income is = (R200)

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