You are comparing two annuities with equal present values. The applicable discount rate is 7.5%. One annuity pays $5,000 on the first day of each year for twenty years. How much does the second annuity pay each year for twenty years if it pays at the end of each year?

A) $4,651
B) $5,075
C) $5,000
D) $5,375
E) $5,405

Since both annuities have equal present values, we can assume that they both have the same value today. We can use the formula for the present value of an annuity to find out what that value is:

PV = PMT * ((1 - (1 / (1 + r)^n)) / r)

Where PV is the present value, PMT is the payment amount, r is the discount rate, and n is the number of periods.

For the first annuity, we know that the present value is equal to the payments multiplied by the present value factor:

PV = $5,000 * ((1 - (1 / (1 + 0.075)^20)) / 0.075)
PV = $52,846.20

Since we know the present value of both annuities is the same, we can use this value to solve for the payment amount of the second annuity:

PV = PMT * ((1 - (1 / (1 + r)^n)) / r)
$52,846.20 = PMT * ((1 - (1 / (1 + 0.075)^20)) / 0.075)
PMT = $5,375.20

Therefore, the second annuity pays $5,375 at the end of each year for twenty years. The best choice is D.