Sylvia purchased an annuity for $100,000 from an inheritance, with no further payments allowed, and income begins in 15 years. This contract is considered a(n)...

The correct answer is a single premium deferred annuity. This type of annuity involves making a single upfront payment, which in this case is the $100,000 Sylvia inherited. The term "deferred" indicates that the income payments from the annuity will not begin immediately upon purchase, which aligns with the fact that Sylvia's payments will commence in 15 years.

In contrast, an immediate annuity would start making payments right away after the purchase, which is not applicable here given the delay in income commencement. A variable annuity involves investment options that fluctuate with market performance, and while these can be structured similarly to deferred annuities, the nature of Sylvia's purchase does not indicate an investment component. Lastly, a lifetime annuity typically ensures payments for the lifetime of the annuitant, which could also apply to deferred annuities, but the defining characteristic in this scenario is primarily the deferred income start date. Hence, the description of Sylvia's contract as a single premium deferred annuity is accurate and captures the key elements of the arrangement.