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a. Assume that their home is now appraised at $200,000 and the value of their automobile has dropped to $8,400. Calculate and characterize the effects

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a. Assume that their home is now appraised at $200,000 and the value of their automobile has dropped to $8,400. Calculate and characterize the effects of these changes on their net worth. Round your answer to the nearest dollar. Net worth would increase by $ 6800 because the value of the real estate rose more than the value of the car declined. Calculate the effects of these changes on their asset-to-debt ratio. Round your answers to three decimal places. Old asset-to-debt ratio: New asset-to-debt ratio: 3.94 4.01 b. If Victor and Maria take out a bank loan for $1,700 and pay off their credit card debts totaling $1,700, what effects would these changes have on their net worth? Taking out a bank loan to pay off the credit card liability would not affect the Hernandezs' net worth. c. If Victor and Maria sell their New York 2038 bond and put the cash into the savings account, what effects would this have on their net worth and liquidity ratio? Assume their annual expenses are $80,979. Round your answers to three decimal places. Selling the New York bond would not affect the Hernandezs' net worth. The liquidity ratio would decrease from to Check My Work (2 remaining) a. Assume that their home is now appraised at $200,000 and the value of their automobile has dropped to $8,400. Calculate and characterize the effects of these changes on their net worth. Round your answer to the nearest dollar. Net worth would increase by $ 6800 because the value of the real estate rose more than the value of the car declined. Calculate the effects of these changes on their asset-to-debt ratio. Round your answers to three decimal places. Old asset-to-debt ratio: New asset-to-debt ratio: 3.94 4.01 b. If Victor and Maria take out a bank loan for $1,700 and pay off their credit card debts totaling $1,700, what effects would these changes have on their net worth? Taking out a bank loan to pay off the credit card liability would not affect the Hernandezs' net worth. c. If Victor and Maria sell their New York 2038 bond and put the cash into the savings account, what effects would this have on their net worth and liquidity ratio? Assume their annual expenses are $80,979. Round your answers to three decimal places. Selling the New York bond would not affect the Hernandezs' net worth. The liquidity ratio would decrease from to Check My Work (2 remaining)

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