Final answer:
To earn $26,679 in interest from an initial investment of $88,930 at a simple interest rate of 10% per annum, the investment period would be 36 months.
Step-by-step explanation:
To calculate the number of months that $88,930 needs to be invested to earn $26,679.00 in interest with a simple interest rate of 10% per annum, we use the formula for simple interest: I = Prt, where I is the interest earned, P is the principal amount, r is the interest rate per period, and t is the time the money is invested in years.
Given I = $26,679, P = $88,930, and r = 0.10, we can rearrange the formula to solve for t: t = I / (Pr).
Substituting the known values we get: t = $26,679 / ($88,930 × 0.10) = $26,679 / $8,893 = 3 years.
To find the number of months, we multiply the number of years by 12: 3 years × 12 months/year = 36 months.
Therefore, the money needs to be invested for 36 months to earn the desired interest.