Answer:
option C is correct, i.e. $700,000
Explanation:
Given is the Annual interest, I = 35000 dollars.
Given is the Rate of interest, R = 5% APR = 0.05
Time period would be 1 year.
It says to find Principal amount invested i.e. P.
We know the formula for Interest is given as follows:-
Interest = Principal invested x Rate of interest x Time.
I = P*R*T
35000 = P x 0.05 x 1
P = 35000/0.05
P = 700,000 dollars.
Hence, they need to invest 700,000 dollars initially.
So, option C is correct, i.e. $700,000