Will and Jane Sparks are establishing a college fund for their 1-year-old daughter, Jennifer. They want to save enough now to pay college tuition at the time she enters college (17 years from now). If her tuition is projected to be $25,000 for a two-year degree, what annual sinking fund payment should they establish if the annual interest is 8%?
a) $3,750
b) $2,700
c) $1,875
d) $1,350