A sum of $60,000 will be needed for building improvements in 5 yr. To generate this amount, a sinking fund is established into which three equal payments will be made, one at the end of each of the first 3 yr. After the third year, no further payments will be made. If an effective annual interest rate of 8% can be expected, the amount that must be paid into the fund each year is most nearly

Select one:

a. $19,000

b. $17,000

c. $16,000

d. $22,000