What is Jacob's net worth if he has a motorcycle worth $12,000 and a checking account balance of $3,000, with liabilities of $4,000 on credit cards and $7,000 on a motorcycle loan?

To find Jacob's net worth, you need to calculate his total assets and subtract his total liabilities.

In this case, Jacob has a motorcycle valued at $12,000 and a checking account balance of $3,000. Adding these together gives a total asset value of $15,000.

Next, we sum Jacob's liabilities, which consist of $4,000 on credit cards and $7,000 on a motorcycle loan. This results in total liabilities of $11,000.

Net worth is then determined by subtracting total liabilities from total assets:

Total assets ($15,000) - Total liabilities ($11,000) = Net worth ($4,000).

Thus, Jacob's net worth is $4,000, which corresponds with the provided answer. Understanding how to calculate net worth in this manner is crucial in personal financial planning, as it helps individuals understand their financial position relative to their assets and debts.