N, age 50, recently bought an annuity that will pay a guaranteed $2,000/month at age 70 for life. What type of annuity did N purchase?

N purchased a fixed deferred annuity. This type of annuity is designed to grow funds over a period before payouts begin, in this case at age 70. The key characteristics of a fixed deferred annuity include a promise of a guaranteed payout amount, in this instance $2,000 per month, and the deferral of payments until a certain future date, which is when N turns 70.

In this scenario, the annuity is deferred because N is still 50 years old and won't begin receiving payments until a later age. The guarantee of the monthly payments also indicates that it is a fixed annuity, meaning the payout amount is predetermined and will not fluctuate with market changes.

Immediate annuities, on the other hand, start paying out immediately after the investment, which does not align with the timeline here. A fixed immediate annuity would also provide immediate payments rather than future payments at age 70. Variable annuities are investment products that can fluctuate with market performance, offering no guaranteed payout like the fixed amount mentioned here.