24
QuizMultiple Choice

N/A — Exam

Question 24 • Advanced Financial Algebra

Adriana's portfolio: Start date: June 1, 2022 Fixed investment: $⁢12,000 in a government bond with a fixed annual return of 5% over one year Variable investment: 80 shares of Stock C, purchased at $⁢100 per share, now valued at $⁢95 per share after one year On June 1, 2023, what is the current value of Adriana's portfolio?

Answer
A
20 dollars comma 000
B
12 dollars comma 600
C
20 dollars comma 200
D
15 dollars comma 600

Explanation

The government bond is worth $12,000 × 1.05 = $12,600 after earning 5% for one year. The 80 shares are now worth 80 × $95 = $7,600. Adding the two investments gives $12,600 + $7,600 = $20,200, so the portfolio’s current value is $20,200 (choice C).

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