Can you please explain and show working?

3 Balcombe Limited wishes to set up a sinking fund that will be sufficient to pay for a new asset in six years' time. The new asset will cost 200,000 in six years' time. If the cost of capital is 12%, how much should the company set aside on an annual basis if they start making payments into the fund now and finish immediately before the asset is acquired? 19,824 B 22,005 C24,645 D 31,482