Explanation:
3% quarterly is .03 / 4 interest per period ( 11 of them )
the compounding formula is then:
FV = PV ( 1 + i) ^n FV = future value = 20 000 PV = ?
i = .03/4 n = 11
Putting in the numbers:
$ 20 000 = PV ( 1 + .03/4)^11 <=====solve for PV
PV = $ 18421.90