Suppose the total bond issue by Telus Corp. was $155 000 000 and they set up a sinking fund on issue date at July 23, 1995 for 25 years. Sinking funds are accounts that companies establish to ensure certain amounts of money will be available at a given future date (refer to 14.5 for information about sinking funds). If the rate of interest is 2.85 percent compounded semi-annually and they make annual end of year payments into the fund:
(a) What is the required annual end-of-year payment for Telus Corp.?
(b) Complete the table below for the Telus Corp.'s sinking fund for each of the payments shown:

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Total Balance Interest Payment Payment Numbers Amount Increase Earned in in Fund on Fund Fund 17 18 19