If Q's annuity payments are guaranteed to be no less than $250 quarterly, what type of annuity might Q own?

The correct choice is associated with a type of annuity that allows for variability in contributions and also guarantees a minimum payment amount. A flexible installment deferred annuity is designed to accommodate varying investment amounts, with the added benefit that the account grows on a tax-deferred basis until withdrawals begin.

This specific type of annuity allows the policyholder to make flexible contributions over time, which makes it suitable for someone like Q, who appears to be assured of a minimum payment of $250 quarterly. The payments that are guaranteed would typically align with the characteristics of a flexible installment deferred annuity, where the payout structure is designed to provide a minimum guarantee while also allowing flexibility in the accumulation phase.

In contrast, a single premium annuity requires a one-time lump sum investment, typically leading to a fixed payment amount. A fixed deferred annuity provides a guaranteed interest rate for a specified period but isn't specifically tied to a minimum quarterly payout. An immediate annuity, while providing guaranteed periodic payments, usually begins payments shortly after a lump sum is deposited and does not adapt over time in the same way as a flexible installment.

Overall, the structure of a flexible installment deferred annuity aligns perfectly with the requirements set forth in the question regarding guaranteed quarterly payments.