Samuel Has $290,000 in His Registered Retirement Savings Plan Right

Multiple Choice

Samuel has $290,000 in his Registered Retirement Savings Plan right now. He will not be able to make any more contributions to the RRSP 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