Freight-hauling firm estimates-calculate size of payments

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Reference no: EM13811217

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

Reference no: EM13811217

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