An investment vehicle that systematically pays out benefits over an extended period of time is a(n)

Question

Quizplus · Accepted Answer

The correct investment vehicle that systematically pays out benefits over an extended period of time is an annuity. An annuity is a contract between an individual and an insurance company where the individual makes a lump sum payment or a series of payments, and in return, the insurance company provides regular payments to the individual either for a fixed period or for the rest of their life. This investment vehicle is commonly used to provide a source of retirement income or to cover long-term care expenses. Common stock, bonds, mutual funds, and money market securities do not provide systematic payments over an extended period of time, making them unsuitable for this purpose.

An Investment Vehicle That Systematically Pays Out Benefits Over an Extended