Explanation:
To find the present value of an ordinary annuity, we can use the present value of annuity formula:
PV = P * (1 - (1 + r)^(-n)) / r
Where:
PV = Present value
P = Periodic payment
r = Interest rate per period
n = Number of periods
In this case, the periodic payment is $19,692, the interest rate is 4.8% (or 0.048) compounded quarterly, and the number of periods is 3 years, which corresponds to 12 quarters.
Let's plug these values into the formula and calculate the present value:
PV = 19692 * (1 - (1 + 0.048/4)^(-12)) / (0.048/4)
Calculating this expression, the present value of the annuity is approximately $69,995.46 (rounded to the nearest cent).
Therefore, the present value of the ordinary annuity is $69,995.46.