Fred Intends to Retire in 10 Years

Fred intends to retire in 10 years. To supplement his pension, he would like to receive $500 every six months for 20 years. If he is to receive the first payment six months after the date of his retirement, what lump amount must he invest today to achieve his goal? Assume that the investment will earn 12% compounded semi-annually.

A) $2,486.50
B) $4,871.78
C) $5,164.09
D) $2,345.75
E) $2,212.97