The annual demand for a product has been projected at 2,000 units. The demand is assumed to be constant throughout the year. The ordering cost is $20 per order, and the holding cost is 20% of the purchase cost. Currently, the purchase cost is $40 per unit. There are 250 working days per year. Whenever an order is placed, it is known that the entire order will arrive on a truck in 6 days. Currently, the company is ordering 250 units each time an order is placed. What is the holding cost for the year using this policy?

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