Monthly contributions:
Les saves $150 per month
Employer contributes $0.50 per $1 = 0.5 × 150 = $75
Total monthly contribution = 150 + 75 = $225
Monthly interest rate:
Annual rate = 10.5% = 0.105
Monthly rate = 0.105 ÷ 12 = 0.00875
Total months: 30 years × 12 = 360 months
Future value formula: FV = P × [(1 + r)^n – 1] / r
Substitute values: FV = 225 × [(1 + 0.00875)^360 – 1] / 0.00875
Calculate growth factor: (1.00875)^360 = 30.4
Subtract 1 and divide by rate: (30.4 – 1) / 0.00875 = 3,360
Multiply by monthly contribution: 225 × 3,360 = 756,000
Answer: Les will have approximately $756,000 after 30 years