recursion

Recursion: solving a problem with a method that calls itself.

compound interest: algorithm

BEGIN
  DO
    Ask the user for the deposit, interest rate and number of terms
  WHILE all of the values are positive, and the interest rate is in decimal format
  Send these values to the Compounder method
  When the Compounder method is done, output the final amount saved
END

Compounder method (requires deposit, interest rate and number of terms):
BEGIN
  Set the variable final amount saved to the deposit
  If the number of terms remaining equals 0 
    Then return the final amount saved
  Else call this Compounder method again, but this time send it:
          The (final amount saved * interest rate) + final amount saved as the new deposit,
          The same interest rate,
          And the number of terms - 1 
  End if
END

compound interest: java

public class compoundInterest{
    public static double compound(double amountInBank, double interestRate, int numberOfTerms){
          if (numberOfTerms == 0)
          {
            return amountInBank;
          }
          else
          {
            return (compound(amountInBank + (amountInBank * interestRate), interestRate, numberOfTerms-1));
          }
    }
    
    public static void main(String[] args) {       
        //invest $100 at 5% for 2 years (compounding annually, so only 2 terms):
        double final_amount = compound(100, 0.05, 2);
        System.out.println(final_amount);
        
        //invest $100 at 5% per year *paid monthly*, for 5 years:
        final_amount = compound(10000, (0.05/12), (5*12));
        System.out.println(final_amount);
    }
}