Question

A. How much must be placed each month into a retirement account earning 15% compounded monthly if the value of the account is to reach $1,000,000 in 25 years?
answer: $308.31
b) if the account continues to earn 15% after retirement, how much per year will the account earn?
hint: what is the interest amount of $1,000,000

I got the first part, confused on the second one.

Answer 1

Alright, so. In other words we're finding what is the interest amount of 1,000,000 at 15%. So:

1,000,000 x .15 = 150,000.