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.

Question

Raina Price

18 December, 20:47

+2

Answers (1)

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Alena Sims · 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.