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Operators & Expressions

Java Program: Bank Interest vs Inflation Comparison Program

Concept Used

  • Nominal Return → Bank interest earned
  • Inflation Rate → Reduction in purchasing power
  • Real Return:

               Real Return (%) = Interest Rate − Inflation Rate

import java.util.Scanner;

 

public class InterestInflationComparison {

    public static void main(String[] args) {

 

        Scanner sc = new Scanner(System.in);

 

        System.out.print("Enter principal amount: ");

        double principal = sc.nextDouble();

 

        System.out.print("Enter annual bank interest rate (%): ");

        double interestRate = sc.nextDouble();

 

        System.out.print("Enter inflation rate (%): ");

        double inflationRate = sc.nextDouble();

 

        // Calculate interest earned

        double interestEarned = principal * interestRate / 100;

 

        // Calculate real return rate

        double realReturnRate = interestRate - inflationRate;

 

        System.out.println("\n------ Interest vs Inflation Report ------");

        System.out.printf("Principal Amount : ₹%.2f%n", principal);

        System.out.printf("Interest Earned  : ₹%.2f%n", interestEarned);

        System.out.printf("Inflation Rate   : %.2f%%%n", inflationRate);

        System.out.printf("Real Return Rate : %.2f%%%n", realReturnRate);

 

        if (realReturnRate > 0) {

            System.out.println("Result: Real GROWTH in purchasing power.");

        } else if (realReturnRate < 0) {

            System.out.println("Result: Real LOSS in purchasing power.");

        } else {

            System.out.println("Result: No real gain or loss.");

        }

 

        sc.close();

    }

}

Output

 
OUTPUT 1: (Real Growth)

INPUT : 
Enter principal amount: 100000
Enter annual bank interest rate (%): 8
Enter inflation rate (%): 5

OUTPUT :
------ Interest vs Inflation Report ------
Principal Amount : ₹100000.00
Interest Earned  : ₹8000.00
Inflation Rate   : 5.00%
Real Return Rate : 3.00%
Result: Real GROWTH in purchasing power.

OUTPUT 2: (Real Loss)

INPUT : 
Enter principal amount: 50000
Enter annual bank interest rate (%): 6
Enter inflation rate (%): 7

OUTPUT :
------ Interest vs Inflation Report ------
Principal Amount : ₹50000.00
Interest Earned  : ₹3000.00
Inflation Rate   : 7.00%
Real Return Rate : -1.00%
Result: Real LOSS in purchasing power.

Explanation

  1. Input Values

           double principal = sc.nextDouble();

           double interestRate = sc.nextDouble();

           double inflationRate = sc.nextDouble();

  • Reads principal, bank interest rate, and inflation rate.
  1. Interest Earned Calculation

            Java Programs

         double interestEarned = principal * interestRate / 100;

  1. Real Return Rate

                        Real Return = Interest Rate − Inflation Rate

         double realReturnRate = interestRate - inflationRate;

  1. Decision Making

   if (realReturnRate > 0)

  • Determines growth, loss, or neutral outcome.