Mandy and Jeff Have a Net Worth of $25,000 and Total

question 7

Multiple Choice

Mandy and Jeff have a net worth of $25,000 and total assets of $140,000.If their revolving credit and unpaid bills total $2,200,what are their total liabilities?

• A)$115,000
• B)$140,000
• C)$142,200
• D)$165,000
• E)$167,200

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Definitions:

Credit Risk

The risk of loss resulting from a borrower's failure to repay a loan or meet contractual obligations.

Compounded Interest

Interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan.

Annual Interest Rate

The percentage increase in money charged per year for the use of borrowed funds or for delaying the repayment of a debt.

Interest Rate

The cost of borrowing money or the reward for saving, usually expressed as a percentage of the principal amount per period.