Which of the following annuities begins payments immediately after a lump-sum premium is paid?

The choice that states an immediate annuity is correct because it refers specifically to an investment vehicle in which payments commence right after a lump-sum premium is made. This setup allows the annuitant to begin receiving regular income payments almost instantly, which is beneficial for individuals who need immediate funds for expenses or retirement.

Immediate annuities are typically purchased with a single premium payment and become effective immediately or within a very short time frame. This contrasts with other types of annuities, such as deferred annuities, where payouts begin at a future date after the accumulation phase. In addition, both fixed and variable annuities can be either immediate or deferred; however, in the context of the question, the term immediately pertains specifically to the immediate annuity, confirming its role in providing instant payment post-lump-sum contribution.