A good answer might be:

The program "tries out" various interest rates starting at zero percent. For each interest rate, the amount of dollars must be reset back to the amount in the account at the beginning of the first year.

Debugging Practice

The way the variable rate is initialized and then immediately incremented is awkward. Here is a possibly buggy program that does this in a different way: 

class  millionDollarBuggy
{

  public static void main( String[] args ) 
  {
    double initialAmount = 1000.00 ;
    double dollars = 0.0;
    double rate;
    int    year;

    rate = 0.0;   // Start interest rate at zero
 
    while ( dollars < 1000000 )
    {

       // compute the dollars after 40 years at the current rate
       year =  1 ;     
       dollars = initialAmount;     
       while (  year <= 40 )
       {     
         dollars = dollars + dollars*rate  ; // add another year's interest     
         dollars = dollars + 1000 ;          // add in this year's contribution
         year    =  year + 1 ;
       }

       // change to the next rate
       rate = rate + 0.001;

    }

    System.out.println("After 40 years at " + rate*100 
      + " percent interest you will have " + dollars + " dollars" );
  }

}

QUESTION 11:

Is there a bug in this program?

Click Here after you have answered the question