The expression 1.08 s+1.02 b predicts the end-of-year value of a financial portfolio, where s is the value of stocks in dollars and b is the value of bonds in dollars in the portfolio at the beginning of the year. What is the predicted end-ofyear value, in dollars, of a portfolio that begins the year with 200 dollars in stocks and 100 dollars in bonds?

Question

The expression  1.08 s+1.02 b predicts the end-of-year value of a financial portfolio, where  s is the value of stocks in dollars and  b is the value of bonds in dollars in the portfolio at the beginning of the year. What is the predicted end-ofyear value, in dollars, of a portfolio that begins the year with 200 dollars in stocks and 100 dollars in bonds?

Bytelearn · Accepted Answer

Identify Values: Identify the values given in the problem. We are given the initial value of stocks (s) as $200 and the initial value of bonds (b) as $100. The expression to calculate the end-of-year value of the portfolio is 1.08s + 1.02b.Substitute Given Values: Substitute the given values into the expression. We need to substitute s = 200 and b = 100 into the expression 1.08s + 1.02b to find the end-of-year value of the portfolio.Perform Calculations: Perform the calculations. Now we calculate the expression with the substituted values: 1.08 * 200 + 1.02 * 100 = 216 + 102 = 318Verify Calculations: Verify the calculations. We can double-check our calculations by ensuring that we multiplied and added correctly: 1.08 * 200 = 216 (correct) 1.02 * 100 = 102 (correct) 216 + 102 = 318 (correct)

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