Question

maximilianos net worth spreadsheet
maximiliano is reviewing his personal finance spreadsheet. he has entered his assets and liabilities, but there are mistakes in some of the formulae. heres what the spreadsheet looks like:

	a	b
2	assets
3	savings	$40,000
4	car values	$15,000
5	home value	$300,000
6	total assets	=sum(b3:b6)
7	liabilities
8	mortgage	$200,000
9	credit card debt	$10,000

what is the correct formula for calculating net worth in cell b11?

• =b5-b8
• =b6+b10
• =sum(b6:b10)
• =b6-b10

Explanation:

Step1: Recall Net Worth Formula

Net worth is calculated as Total Assets minus Total Liabilities. From the spreadsheet, Total Assets is in cell B6, and we need to find Total Liabilities (which would be in B10, assuming B10 is Total Liabilities, as assets are summed in B6 and liabilities should be summed in B10). So the formula should be Total Assets - Total Liabilities, i.e., =B6 - B10? Wait, no, wait. Wait, first, let's check the structure. Assets: B3 (Savings), B4 (Car Values), B5 (Home Value), so Total Assets (B6) is SUM(B3:B5) maybe? Wait, the given B6 formula is =SUM(B3:B6), which is a mistake, but for net worth, it's Assets - Liabilities. So Total Assets (B6) minus Total Liabilities (B10). Wait, but the options: let's list the options again. The options are =B5 - B8, =B6 + B10, =SUM(B6:B10), =B6 - B10. Wait, no, the options as per the image: first option =B5 - B8, second =B6 + B10, third =SUM(B6:B10), fourth =B6 - B10. Wait, net worth is Assets - Liabilities. So Total Assets is B6, Total Liabilities is B10 (assuming B10 is Total Liabilities, since liabilities are Mortgage (B8) and Credit Card Debt (B9), so Total Liabilities would be SUM(B8:B9), which is B10). So Net Worth = Total Assets (B6) - Total Liabilities (B10), so the formula is =B6 - B10. Wait, but let's check the options. The fourth option is =B6 - B10. Wait, but let's re-express. Wait, maybe I misread. Let's check the spreadsheet again. The spreadsheet has:

- Assets: Savings (B3), Car Values (B4), Home Value (B5). So Total Assets (B6) should be SUM(B3:B5), but the given B6 formula is =SUM(B3:B6), which is wrong, but for the purpose of the question, we need to find the correct formula for net worth (Assets - Liabilities). Liabilities: Mortgage (B8), Credit Card Debt (B9), so Total Liabilities (B10) is SUM(B8:B9). So Net Worth = Total Assets (B6) - Total Liabilities (B10), so the formula is =B6 - B10. So the fourth option, =B6 - B10. Wait, but let's check the options again. The options are:

1. =B5 - B8

2. =B6 + B10

3. =SUM(B6:B10)

4. =B6 - B10

So the correct one is the fourth option, =B6 - B10. Wait, but let's confirm. Net worth is assets minus liabilities. So if B6 is total assets and B10 is total liabilities, then B6 - B10 is correct. So the answer is =B6 - B10, which is the fourth option. Wait, but maybe I made a mistake. Wait, another way: maybe the Total Liabilities is B8? No, B8 is Mortgage, B9 is Credit Card Debt, so Total Liabilities should be B8 + B9 = B10. So yes, Net Worth = B6 (Total Assets) - B10 (Total Liabilities) = B6 - B10. So the correct formula is =B6 - B10, which is the fourth option. Wait, but let's check the options again. The options are:

- =B5 - B8: B5 is Home Value, B8 is Mortgage. That's not Assets - Liabilities.

- =B6 + B10: Assets + Liabilities, which is wrong.

- =SUM(B6:B10): Sum of Assets and Liabilities, which is wrong.

- =B6 - B10: Assets - Liabilities, which is correct for net worth.

So the correct option is the fourth one, =B6 - B10. Wait, but in the options, the fourth option is =B6 - B10? Wait, the user's image shows the fourth option as =B6 - B10? Wait, the original image's options: let's re-express. The four options are:

1. =B5 - B8

2. =B6 + B10

3. =SUM(B6:B10)

4. =B6 - B10

Yes. So the correct formula for net worth (Assets - Liabilities) is Total Assets (B6) minus Total Liabilities (B10), so =B6 - B10.

Step2: Evaluate Each Option

- Option 1: =B5 - B8. B5 is Home Value, B8 is Mortgage. This is not Assets - Liabilities (only part of assets and part of liabilities), so incorrect.

- Option 2: =B6 + B10. Assets + Liabilities, which would increase net worth, but net worth is Assets - Liabilities, so incorrect.

- Option 3: =SUM(B6:B10). Summing Assets (B6) and Liabilities (B10 and others), which is not correct.

- Option 4: =B6 - B10. Total Assets (B6) minus Total Liabilities (B10), which is the correct formula for net worth (Assets - Liabilities).

Answer:

The correct option is the fourth one: =B6 - B10 (the option with formula =B6 - B10)