Find the present value of a three-year, $20,000 ordinary annuity deposited into an account that pays 12 percent annual interest, compounded monthly. Solve for the present value of the annuity in the following ways:
a. as three single cash flows discounted at the stated annual rate of interest.
b. as three single cash flows discounted at the appropriate effective annual rate of interest.
c. as a three-year annuity discounted at the effective annual rate of interest.