1. **State the problem:** We want to find the lump sum deposited today (present value) that is equivalent to receiving $20,000 at the end of each year for 6 years, with an interest rate of 3% compounded annually. 2. **Formula used:** The present value of an ordinary annuity is given by: $$PV = P \times \frac{1 - (1 + r)^{-n}}{r}$$ where: - $P$ is the payment per period ($20,000$), - $r$ is the interest rate per period ($0.03$), - $n$ is the number of periods ($6$). 3. **Explanation:** This formula calculates how much a series of future payments is worth in today's dollars, considering the interest rate. 4. **Calculate:** $$PV = 20000 \times \frac{1 - (1 + 0.03)^{-6}}{0.03}$$ 5. **Evaluate the power:** $$ (1 + 0.03)^{-6} = 1.03^{-6} \approx 0.83748 $$ 6. **Substitute back:** $$PV = 20000 \times \frac{1 - 0.83748}{0.03} = 20000 \times \frac{0.16252}{0.03}$$ 7. **Simplify:** $$PV = 20000 \times 5.4173 = 108346$$ 8. **Interpretation:** The lump sum deposited today should be approximately $108,346$ to yield the same total amount as the 6 annual payments of $20,000 at 3% interest. **Final answer:** $$\boxed{108346}$$