The correct answer is: B. deferred annuity
A deferred annuity is a contract between an investor and an insurance company in which the investor agrees to make a series of payments to the insurance company, and the insurance company agrees to make a series of payments to the investor at a later date. The payments made by the investor are called premiums, and the payments made by the insurance company are called benefits.
Student loans, mortgages, and car loans are all examples of deferred annuities. In each of these cases, the borrower agrees to make a series of payments to the lender, and the lender agrees to make a lump sum payment to the borrower at a later date.
A lump sum amount is a single payment that is made at a specific time. A payment fixed
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