At age 51 Diane Fox used a lump sum distribution from her retirement plan to purchase a fixed annuity from the Lantana insurance company Lantana began making annuity payments of $ 750 a month to Ms Fox when she reached age 66. Annuity payments continues until her death at age 86. In this situation Ms Fox purchased the type of annuity known as:
1) An immediate annuity and her annuity has a 15 year payout period.
2) An immediate annuity and her annuity has a 15 year Accumulation period.
3) A deferred annuity and her annuity had a 15 year payout period.
4) A deferred annuity and her annuity had a 15 year accumulation period.