Question

Which forms of payment can be used to purchase an annuity?

A) Series of payments only.
B) Deferred single payment only.
C) Single payment or a series of payments.
D) Single payment only.

Answer 1

The forms of payment that can be used to purchase an annuity are single payment or a series of payments. An annuity provides a steady stream of income over a specified period of time and is commonly used for retirement planning. Option C

Step-by-step explanation:

The forms of payment that can be used to purchase an annuity are single payment or a series of payments. An annuity is a financial product that provides a steady stream of income over a specified period of time. It is commonly used for retirement planning.

Here are some examples of how payments can be made to purchase an annuity:

You can make a single large payment upfront

You can make a series of regular payments over a period of time

You can make a combination of a single payment and series of payments. Option C