Which of the following annuities is purchased with a lump-sum payment and allows an individual to receive income payments beginning now?

Question

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An immediate annuity is purchased with a lump sum payment and provides income payments immediately or very soon after purchase. Options A, C, and E are all types of life insurance, while a deferred annuity allows for payments to be deferred to a later date.

Which of the Following Annuities Is Purchased with a Lump-Sum