Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Katherine Kocher has determined the following information about her own financia

ID: 2738376 • Letter: K

Question

Katherine Kocher has determined the following information about her own financial situation. Her checking account is worth $450 and her savings account is worth $1,700. She owns her own home that has a market value of $110,000. She has furniture and appliances worth $10,000 and a home computer and laptop worth $3,100. She has a car worth $13,500. She has recently purchased a 2-year certificate of deposit worth $5,600 and has a retirement account worth $43,000. What is the value of her liquid assets?

$187,350

$48,600

$110,000

$2,150

$1,700

Katherine Kocher has determined the following information about her own financial situation. Her checking account is worth $450 and her savings account is worth $1,700. She owns her own home that has a market value of $110,000. She has furniture and appliances worth $10,000 and a home computer and laptop worth $3,100. She has a car worth $13,500. She has recently purchased a 2-year certificate of deposit worth $5,600 and has a retirement account worth $43,000. What is the value of her liquid assets?

Explanation / Answer

Liquid Assets = Checking Accpunt + savings Account

= 450 + 1700

= $ 2,150

An asset is said to be liquid if it is easy to sell or convert into cash without any loss in its value. By definition, bank notes and checking accounts are the most liquid assets.