Program to find the rate percentage from compound interest of consecutive years
Given two integers N1 and N2 which is the Compound Interest of two consecutive years. The task is to calculate the rate percentage.
Input: N1 = 660, N2 = 720
Output: 9.09091 %
Input: N1 = 100, N2 = 120
Output: 20 %
Approach: The rate percentage can be calculated with the formula ((N2 – N1) * 100) / N1 where N1 is the compound interest of some year and N2 is the compound interest for the next year.
Let us consider the 1st Example:
The difference between the Compound interest in the two consecutive years is because of the interest received on the previous year interest. Therefore,
–> N2 – N1 = N1 * (Rate / 100)
–> 720 – 660 = 660 * (Rate / 100)
–> (60 / 660) * 100 = Rate
–> Rate = (100 / 11) = 9.09% (Approx)
Below is the implementation of the above approach:
Time Complexity: O(1)
Auxiliary Space: O(1)
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