the expression 1.08s + 1.02b predicts the end - of - year value of a financial portfolio, where s is the…

the expression 1.08s + 1.02b 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 - of - year value, in dollars, of a portfolio that begins the year with 200 dollars in stocks and 100 dollars in bonds?

the expression 1.08s + 1.02b 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 - of - year value, in dollars, of a portfolio that begins the year with 200 dollars in stocks and 100 dollars in bonds?

Answer

Explanation:

Step1: Substitute values

Given (s = 200) and (b=100), substitute into (1.08s + 1.02b). So we have (1.08\times200+1.02\times100).

Step2: Calculate first product

(1.08\times200 = 216).

Step3: Calculate second product

(1.02\times100=102).

Step4: Calculate sum

(216 + 102=318).

Answer:

318