calculating Bank interest rate.

[dotnet007]

I want to solve interest rate calculation of a Bank.
But i don't know about the algorithm of interest rate calculation for bank.
suppose one customer has a account. ha has 5000US in his account for five month.
so how can i calculate the total interest of 5 months (suppose, monthly interest rate is 0.05 )
Please if any body know about interest calculation of a bank help me...

[sukatoa]

Algorithm? You should know that before converting it to java code.

You can search from the web about it.

come back here and post the algorithm that you have.

[dotnet007]

thanks for your reply. i will post the algorithm if i can manage....
Best of Luck

[Eku]

Please confirm this Algo.

For Annual Interest Rates:
totalAmmount = (BasicAmmount) x ((InterestRateAnnually)^(NumberOfYears))
or in another algo it may look like this. But they are the same.
for (int i-0; i<NumberOfYears; i++){
basicAmmount = (BasicAmmount) + (BasicAmmount * InterestRateAnnually)}

Code:

double CurrMoney=5000,TotalMoney;
int years = 5;
for (int i=0;i<years;i++){
CurrMoney=CurrMoney + (CurrMoney*0.05);
} TotalMoney=CurrMoney;

OR the simplified version

Code:

double CurrMoney=5000,TotalMoney;
int years = 5;
TotalMoney=CurrMoney * (1+((0.05)^years));

[Eranga]

Much better to avoid loops as much as possible. The second way is much better.

[Eku]

The 2nd one is much simplier. Just search on how to use the Exponent. i think '^' doesnt work. =P

[Eranga]

Yes it is. For exponent you can't use ^ sign. It's just for pseudo codes. If you it's not work, why you put it there

Use Math class for those types of processing.

[Eku]

Thanks for the Tip. Here it is now.

Code:

double CurrMoney=5000,TotalMoney;
int years = 5;
TotalMoney=CurrMoney * (1+(java.lang.Math.pow((0.05),years)));

[Eranga]

Yep it's. But it is not good to import Java packages in runtime. Import them before use, at the top level of any class.

[Eku]

Thanks for the tips Eranga. Here is the New Code. =)

Code:

package test;
import java.lang.Math.*;
public class Main
{
    public static void main(String[] args)
	{
            double CurrMoney=5000,TotalMoney,years = 5;
            TotalMoney=CurrMoney * (1+(Math.pow((0.05),years)));
             System.out.println(TotalMoney);
	}
}

[Eranga]

Ya, it's much better.