P funds an annuity with monthly contributions for 15 years, after which it will provide retirement payments; what type of annuity is this?

The correct answer is a deferred annuity. A deferred annuity is designed to accumulate funds over a period of time before any payouts begin. In this scenario, P contributes monthly for 15 years, which fits the definition of a deferred annuity since contributions are made during the accumulation phase, and retirement payments will commence after this period.

The key feature of a deferred annuity is that the payout phase, or annuitization, starts at a later date than the accumulation phase, allowing the investment to grow over time. This structure often benefits individuals looking to save for retirement, as it allows for compound interest to increase the value of the annuity before withdrawals are made.

Other types of annuities mentioned do not apply. An immediate annuity would provide payouts right after the premium is paid, a single premium annuity requires only a one-time lump sum payment instead of monthly contributions, and a flexible annuity allows for varying contribution amounts rather than fixed monthly payments. Thus, the nature of the contributions and the timing of the payouts clearly classify this as a deferred annuity.