An annuity is$$a:$($Select the best answer$$below$.)$

A$.$

financial contract that you renegotiate every year.

B$.$

type of account in which you make annual contributions.

C$.$

financial contract that provides annual payments for a specified period or for the$$annuitant$\text{'}$s life.

D$.$

financial contract that provides annual payments that are renegotiated every year.

Part $3$

A

variablevariable

$$annuity:$($Select the best answer$$below$.)$

A$.$

provides a specified return on an investmentprovides$$a$$specified$$return$$on$$an$$investment$.$

B$.$

enables the investor to renegotiate the terms every year.

C$.$

allows the investor to choose among various investment vehicles with varying returnsallows$$the$$investor$$to$$choose$$among$$various$$investment$$vehicles$$with$$varying$$returns$.$

D$.$

cannot be started until retirement age.

Part $4$

The main disadvantage of annuities is$$the:$($Select the best answer$$below$.)$

A$.$

tax liability.

B$.$

poor performance of these types of accounts.

C$.$

low interest rates offered.

D$.$

high fees associated with them charged by the financial institution that sells and manages them.