A freight-hauling firm estimates that it will need a new forklift in six years. The estimated cost of the vehicle is $40,000. The company sets up a sinking fund that pays 8% compounded semi annually, into which it will make semi annual payments to achieve the goal. Calculate the size of the payments. Show work.
A. $2662.09
B. $2107.80
C. $1023.47
D. $1323.71