Question

Any help would be greatly appreciated thank you

Answer 1

Answer:

option C is correct, i.e. $700,000

Step-by-step 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