Problem 6: Simple & Compound Interest with Tiered Bonus Rate

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Problem Statement

Given Principal (P), annual interest rate (R), and time in years (T), calculate both Simple Interest (SI) and annually compounded Compound Interest (CI). If tenure T > 5 years, apply an additional 2% loyalty bonus rate.

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Variable Dictionary / Table

Variable Name	Data Type	Role & Purpose
P, R, T	Float / Double	Principal amount, Base rate %, Time period
effectiveRate	Float / Double	R + 2% if T > 5, else R
SI, CI	Float / Double	Calculated interest amounts

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Step-by-Step Formal Algorithm

Step 1: Start.
Step 2: Read Principal P, Base Rate R, Time T.
Step 3: If P <= 0 or R <= 0 or T <= 0:
         Print 'Invalid input parameters' and Stop.
Step 4: If T > 5:
         effectiveRate = R + 2
Step 5: Else:
         effectiveRate = R
Step 6: Compute SI = (P * effectiveRate * T) / 100.
Step 7: Compute CI = P * ((1 + effectiveRate / 100) ^ T) - P.
Step 8: Print effectiveRate, SI, CI.
Step 9: Stop.

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Flowchart (Interactive Graphical Diagram)

flowchart TD Start([Start]) --> In[/"Read P, R, T"/] In --> Valid{"Is P > 0, R > 0, and T > 0 ?"} Valid -- No --> Err[/"Print 'Invalid Inputs'"/] Err --> Stop([Stop]) Valid -- Yes --> Bonus{"Is T > 5 ?"} Bonus -- Yes --> Add["effectiveRate = R + 2"] Bonus -- No --> Base["effectiveRate = R"] Add --> Calc["SI = P * effectiveRate * T / 100
CI = P * (1 + effectiveRate/100)^T - P"] Base --> Calc Calc --> Out[/"Print SI, CI, effectiveRate"/] Out --> Stop

🖥️

Flowchart (ANSI Terminal ASCII Chart)

         +-----------------+
         |     [ START ]   |
         +-----------------+
                  |
                  v
         +-----------------+
         |  Read P, R, T   |
         +-----------------+
                  |
                  v
               /     \
             /Valid Inputs?\ ---NO---> [Print Invalid] --> [STOP]
             \             /
                  | YES
                  v
               /     \
             /   T > 5 ?   \ ---YES--> [effectiveRate = R + 2]
             \             /                     |
                  | NO                           |
                  v                              |
         +--------------------+                  |
         | effectiveRate = R  |                  |
         +--------------------+                  |
                  |                              |
                  +--------------+---------------+
                                 |
                                 v
         +---------------------------------------+
         | SI = P * effectiveRate * T / 100      |
         | CI = P * (1 + effectiveRate/100)^T - P|
         +---------------------------------------+
                                 |
                                 v
         +---------------------------------------+
         |      Print SI, CI, effectiveRate      |
         +---------------------------------------+
                                 |
                                 v
                              [ STOP ]

🧪

Dry-Run Execution Trace Table

Execution Step / Case	Variables State 1	Variables State 2	Condition Evaluation	Output / Result
Short Term (T=3)	P=10000, R=8%, T=3	effectiveRate=8%	SI=2400, CI=2597.12	SI=$2,400.00, CI=$2,597.12
Long Term (T=6)	P=10000, R=8%, T=6	effectiveRate=10% (+2% bonus)	SI=6000, CI=7715.61	SI=$6,000.00, CI=$7,715.61

⚡

Interactive C++ Compiler & Runner

Live In-Browser

Edit the code directly with the Edit Code button, provide custom inputs, and press Run Code to compile and execute in the live terminal console below!

📄 problem_6.cpp

GCC 13.2 • C++20

#include <iostream>
#include <cmath>
#include <iomanip>
using namespace std;

int main() {
    double P, R, T;
    cout << "Enter Principal (P), Base Rate % (R), Time in years (T): ";
    if (!(cin >> P >> R >> T) || P <= 0 || R <= 0 || T <= 0) {
        cout << "Invalid inputs! P, R, and T must be strictly positive.\n";
        return 1;
    }

    double effectiveRate = (T > 5.0) ? (R + 2.0) : R;

    double SI = (P * effectiveRate * T) / 100.0;
    double CI = P * pow(1.0 + (effectiveRate / 100.0), T) - P;

    cout << fixed << setprecision(2);
    cout << "\n========================================\n";
    cout << "   FINANCIAL INTEREST CALCULATION REPORT\n";
    cout << "========================================\n";
    cout << "Principal (P)        : $" << P << "\n";
    cout << "Base Rate            : " << R << "%\n";
    cout << "Tenure (T)           : " << T << " years\n";
    cout << "Effective Rate       : " << effectiveRate << "%" 
         << (T > 5.0 ? " (+2% Long-Term Loyalty Bonus)" : "") << "\n";
    cout << "----------------------------------------\n";
    cout << "Simple Interest (SI) : $" << SI << " (Total: $" << (P + SI) << ")\n";
    cout << "Compound Interest(CI): $" << CI << " (Total: $" << (P + CI) << ")\n";
    cout << "Compounding Edge     : +$" << (CI - SI) << "\n";
    cout << "========================================\n";
    return 0;
}

#include <iostream>
#include <cmath>
#include <iomanip>
using namespace std;

int main() {
    double P, R, T;
    cout << "Enter Principal (P), Base Rate % (R), Time in years (T): ";
    if (!(cin >> P >> R >> T) || P <= 0 || R <= 0 || T <= 0) {
        cout << "Invalid inputs! P, R, and T must be strictly positive.\n";
        return 1;
    }

double effectiveRate = (T > 5.0) ? (R + 2.0) : R;

double SI = (P * effectiveRate * T) / 100.0;
    double CI = P * pow(1.0 + (effectiveRate / 100.0), T) - P;

cout << fixed << setprecision(2);
    cout << "\n========================================\n";
    cout << "   FINANCIAL INTEREST CALCULATION REPORT\n";
    cout << "========================================\n";
    cout << "Principal (P)        : $" << P << "\n";
    cout << "Base Rate            : " << R << "%\n";
    cout << "Tenure (T)           : " << T << " years\n";
    cout << "Effective Rate       : " << effectiveRate << "%" 
         << (T > 5.0 ? " (+2% Long-Term Loyalty Bonus)" : "") << "\n";
    cout << "----------------------------------------\n";
    cout << "Simple Interest (SI) : $" << SI << " (Total: $" << (P + SI) << ")\n";
    cout << "Compound Interest(CI): $" << CI << " (Total: $" << (P + CI) << ")\n";
    cout << "Compounding Edge     : +$" << (CI - SI) << "\n";
    cout << "========================================\n";
    return 0;
}

⌨️ Standard Input (cin):

Presets:

💻 Terminal Output • Ready to run

Input:
10000 8 6

Output:
========================================
   FINANCIAL INTEREST CALCULATION REPORT
========================================
Principal (P)        : $10000.00
Base Rate            : 8.00%
Tenure (T)           : 6.00 years
Effective Rate       : 10.00% (+2% Long-Term Loyalty Bonus)
----------------------------------------
Simple Interest (SI) : $6000.00 (Total: $16000.00)
Compound Interest(CI): $7715.61 (Total: $17715.61)
Compounding Edge     : +$1715.61
========================================