We are given the differential equation:
\[
\frac{dy}{dx} = y + 2x - x^2, \quad y(0) = 1.
\]
We will solve this using the Euler method with step size \( h = 0.5 \). The general form of Euler's method is:
\[
y_{n+1} = y_n + h \cdot f(x_n, y_n).
\]
At \( x = 0 \), we have \( x_0 = 0 \) and \( y_0 = 1 \).
For \( x_1 = 0.5 \):
\[
f(x_0, y_0) = y_0 + 2x_0 - x_0^2 = 1 + 2(0) - 0^2 = 1.
\]
Thus,
\[
y_1 = y_0 + h \cdot f(x_0, y_0) = 1 + 0.5(1) = 1.5.
\]
For \( x_2 = 1.0 \):
\[
f(x_1, y_1) = y_1 + 2x_1 - x_1^2 = 1.5 + 2(0.5) - (0.5)^2 = 1.5 + 1 - 0.25 = 2.25.
\]
Thus,
\[
y_2 = y_1 + h \cdot f(x_1, y_1) = 1.5 + 0.5(2.25) = 1.5 + 1.125 = 2.625.
\]
Therefore, the value of \( y \) at \( x = 1.0 \) is \( 2.625 \).