Using the appropriate present value table and assuming a 12% annual interest rate, determine the present value on December 31, 2016, of a five-period annual annuity of $5,000 under each of the following situations:

3-The first payment is received on December 31, 2017, and interest is compounded quarterly.

Answer:

3. PV of $1

Payment i = 3% PV n

First payment: $5,000 x .88849 = $ 4,442 4

Second payment 5,000 x .78941 = 3,947 8

Third payment 5,000 x .70138 = 3,507 12

Fourth payment 5,000 x .62317 = 3,116 16

Fifth payment 5,000 x .55368 = 2,768 20

Total $17,780

This situation is very confusing, why do we use the present table in this situation and not the present table of ordinary annuity?!

Please explain the situation?