A colleague of yours knows that you have taken BUS$-123,$ Introduction to Investments. He asks you for your

opinion about an advertisement he saw in the San Diego Union$-$Tribune. The advertisement offers him a $6\%$

$$guaranteed principal and guaranteed growth$$ rate with $$checkbook access.$$ It seems to be from an insurance

company but somewhere there is a mention of an FDIC Account. He is very worried about losing money and

wants his principal to be guaranteed. He says that he needs the money in two years. What advice can you give

him? Please be specific about the advantages and disadvantages of the investment and the potential risks involved.

What questions would you suggest he ask the company if he decides to contact them? What questions do you have

about the advertisement?