Finance
A Tennessee borrower's 'net worth' is calculated as:
AAnnual income minus annual expenses
BTotal assets minus total liabilities✓ Correct
CMonthly income multiplied by 12
DCash in checking and savings accounts only
Explanation
Net worth = Total Assets − Total Liabilities. Lenders review net worth as part of the underwriting process to assess a borrower's overall financial strength. It includes all assets (real estate, investments, savings) minus all debts.
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