Question

Issue:
December is approaching, and Sylvestor Investor is anticipating a year-end bonus of $10,000. Sylvestor and his wife, Frugala, agree to invest the money rather than spend it. Sylvestor is so eager that he begins day trading in November, losing almost the whole month’s paycheck. Alarmed, Frugala packs up his computer and sends it to her cousin Wilder in Australia’s Outback. When his bonus arrives, Sylvestor has to find other ways to put his money to work.

Part 1:
Frugala immediately sends Sylvestor to the bank with his bonus check. There he places all $10,000 in a savings account, promising himself not to settle for an interest rate of 2.9 percent for long. The bank’s financial adviser suggests that Sylvestor consider certificates of deposit or possibly mutual funds, and Frugala suggests that he buy more life insurance.

2) Where would Sylvestor go to talk to a stockbroker?
3) If Sylvestor waits a year, how much money will he have available to invest?

Answer 1

He could either talk to a stockbroker on the phone or online. Sylvestor considers using a certificate of deposit, although his wife prefers he gets more life insurance.

Answer 2

Answer:

Stockbroker can be found under financial sectors

Step-by-step explanation:

2) Stockbroker is the one who buys and sells securities and stocks through stock exchange in return for a fee or commission. he?she charges some commission fee from the client. Now, if Sylvestor want to invest his money in mutual fund or stocks, he must visit a stockbroker. Stockbroker deals with finance. Hence, they can be found in financial sector like Banks, or they may have individual offices.

3) Sylvestor got his investment return as year-end bonus by his investor. The amount was $10,000.

Now, if he invests this amount in stocks or mutual fund, he may gain interest accordingly. Moreover, he is likely to have more $10,000 at the end of next year by his investor as year-end bonus

Total money available to invest next year = $20,000