Question

At the end of this month, les will start saving $200 a month for retirement through his company's retirement plan. his employer will contribute an additional $.50 for every $1.00 that he saves. if he is employed by this firm for 30 more years and earns an average of 8.25 percent on his retirement savings, how much will he have in his retirement account 30 years from now?

Answer 1

The answer is 74,970

You would take $200 multiply it by 12 (months) to get 2,400/year.
Then take 2,400 and multiply it by 30 to get 72,000

Then take 72,000 and multiply it by .0825 to get 5,940

Divide that in half to get 2,970

Take 72,000 + 2,970 = 74,970