1. **State the problem:** Claudette has $560000 in capital and wants to withdraw equal payments at the end of each year for 20 years. The capital earns 7.5% interest compounded annually. We need to find the annual payment amount that will deplete the capital after 20 years. 2. **Identify the formula:** This is an annuity problem where the present value (PV) is $560000, the interest rate per period (i) is 7.5% or 0.075, and the number of periods (n) is 20. The formula for the present value of an ordinary annuity is: $$PV = PMT \times \frac{1 - (1 + i)^{-n}}{i}$$ where $PMT$ is the annual payment. 3. **Rearrange the formula to solve for $PMT$:** $$PMT = PV \times \frac{i}{1 - (1 + i)^{-n}}$$ 4. **Substitute the known values:** $$PMT = 560000 \times \frac{0.075}{1 - (1 + 0.075)^{-20}}$$ 5. **Calculate the denominator:** $$1 + 0.075 = 1.075$$ $$1.075^{-20} = \frac{1}{1.075^{20}} \approx \frac{1}{4.292} \approx 0.2331$$ $$1 - 0.2331 = 0.7669$$ 6. **Calculate the fraction:** $$\frac{0.075}{0.7669} \approx 0.0978$$ 7. **Calculate the payment:** $$PMT = 560000 \times 0.0978 = 54768$$ 8. **Round to the nearest cent:** $$PMT \approx 54768.00$$ **Final answer:** Claudette will receive approximately $54768.00 as the annual payment.