Starting today, Stephen is going to contribute $200 on the first of each month to his retirement account. His employer will contribute an additional 50% of the amount Stephen contributes. If both Stephen and his employer continue to do this and he can earn a monthly rate of 0.75%, how much will Stephen have in his retirement account 40 years from now?

A) $936,264
B) $943,286
C) $1,404,396
D) $1,414,929
E) $1,672,413

Stephen contributes $200 each month, and his employer contributes an additional 50% of that amount, which is $100. Therefore, the total monthly contribution is $300. To find the future value of these contributions, we use the future value of an annuity formula: $FV=P\times \left(\frac{(1+r{)}^n-1}{r}\right)$ , where $P$ is the payment amount per period, $r$ is the interest rate per period, and $n$ is the total number of payments. In this case, P = $300 , $r=0.0075$ (0.75% monthly interest rate), and $n=40\times 12=480$ (40 years of monthly contributions). Plugging these values into the formula gives us the future value of Stephen's retirement account. The correct answer is $1,414,929, which is option D.