Final answer:
An annuity is considered fixed except when it offers no interest on the investment, which is Option 4 Offers no interest on the investment.
Step-by-step explanation:
An annuity is considered fixed when it does all of the following EXCEPT Option 4: Offers no interest on the investment. Annuities provide individuals with a steady stream of income in retirement, typically guaranteeing a fixed sum of money every year. However, fixed annuities differ from variable annuities in that they offer a guaranteed interest rate rather than allowing the interest rate to fluctuate based on the performance of investment options. With inflation and the possibility of not being able to work due to health reasons, having a stable income through a fixed annuity becomes a private market option for ensuring sufficient retirement income. While it's considered a safer investment, a fixed annuity may not be as lucrative as more variable, risky investments.