Samuel has $290,000 in his Retirement Savings Plan right now. He will not be able to make any more contributions to the RSP but he is planning to let the money accumulate until he has enough so that he can take out $3,000 per month for 25 years. How long will he have to wait until he takes out the first $3,000 withdrawal? His investments earn 7.5% compounded monthly.
A) 39 months
B) 54 months
C) 89 months
D) 95 months
E) 112 months
Correct Answer:
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