Final answer:
Statement (A) is correct; a straight life annuity provides greater monthly payments than a life annuity with a period certain because it has no guaranteed payout period.
Step-by-step explanation:
The correct statement concerning an individual straight life annuity is: (A) A straight life annuity provides greater monthly dollar payments than a life annuity with a period certain. This is because a straight life annuity only pays out for as long as the individual lives, with no guaranteed payout period, whereas a life annuity with a period certain has a lower payment to account for the guaranteed payout even if the individual passes away during that period. (B) A 100% joint and survivor annuity will potentially provide a smaller benefit than a 50% joint and survivor benefit because it has to last for the lifetimes of both individuals. (C) A period certain annuity would indeed be used if a father wanted to ensure that benefits would continue for a specific period such as until his son turns 25. (D) A life annuity with 10 years certain does not necessarily provide larger benefits than a life annuity with 20 years certain; the certainty period does not typically affect the amount of the individual payments but guarantees that the payments will continue for a minimum period after the annuitant's death.