Question

you have an investment where you make regular payments over a specified period. in return, you receive guaranteed income payments for the rest of your life. this investment is particularly useful for ensuring a steady income stream in retirement. which investment is it?
certificate of deposit (cd): cds offer fixed interest rates and maturity periods, but not lifelong income.
bond: bonds offer fixed interest payments and principal repayment at maturity.
mutual fund: mutual fund returns vary based on market performance.
annuity: annuities provide regular guaranteed income payments for life.

Explanation:

A certificate of deposit (CD) offers fixed - interest rates and maturity periods but not lifelong income. Bonds offer fixed interest payments and principal repayment at maturity. Mutual fund returns vary based on market performance. Annuities provide regular guaranteed income payments for life, which matches the description in the question.

Answer:

Annuity: Annuities provide regular guaranteed income payments for life.