Question

Draw hierarchy charts or flowcharts that depict the programs described below. (See Appendix D for instructions on creating flowcharts.) Account Balance Design a hierarchy chart or flowchart for a program that calculates the current balance in a savings account. The program must ask the user for: \(-\) The starting balance \- The total dollar amount of deposits made \- The total dollar amount of withdrawals made \(-\) The monthly interest rate Once the program calculates the current balance, it should be displayed on the screen.

Short answer

Question: Create a hierarchy chart or a flowchart for a program that calculates the current balance in a savings account, taking into account user inputs, the calculation of the current balance, and the output display.

Step-by-step solution

Start

Draw the start symbol to initiate the flowchart.

Get Input

Draw the input symbols to represent the user prompts, acquiring: 1. The starting balance 2. The total dollar amount of deposits made 3. The total dollar amount of withdrawals made 4. The monthly interest rate

Compute New Balance

Use a process symbol to describe the calculation of the current balance using the following formula: Current Balance = Starting Balance + Deposits - Withdrawals

Calculate Interest

Using a process symbol, calculate the interest amount to be added to the current balance. The formula for interest calculation is: Interest Amount = Current Balance * Monthly Interest Rate

Update Current Balance

Use another process symbol to add the calculated interest amount to the current balance. The formula for updating the current balance is: Current Balance = Current Balance + Interest Amount

Display Output

Draw the output symbol to represent the display of the current balance on the screen.

End

Draw the end symbol to indicate the completion of the flowchart.

Key concepts

Hierarchy Chart

A hierarchy chart is a visual representation of the structure of a program or system. It breaks down the program into smaller, manageable parts, showing the relationships among them. This chart is useful in planning and designing before actual coding starts.

• In our savings account balance program, the hierarchy chart illustrates each task the program performs.
• Tasks are usually represented as functions or steps, such as obtaining user input, calculating balance, applying interest, and showing results.

By visualizing these steps, developers can understand how each part of the program progresses and interacts. This helps spot potential errors early on and ensures the logic flows smoothly from one action to the next.

Savings Account Balance

The savings account balance in our program refers to the amount of money currently held in the account after performing a series of updates. These updates include deposits, withdrawals, and interest calculations.

• The initial step involves understanding the starting balance, which is the amount available at the outset.
• Deposits add funds, whereas withdrawals remove funds from this balance.

Calculating the accurate savings account balance is crucial because it gives a clear picture of one's current financial standing, after calculating the balance updates based on user-provided information.

Interest Calculation

Interest calculation is an essential part of managing a savings account as it contributes to the growth of the account balance. This process involves the application of a monthly interest rate to the current balance.

• The interest is calculated using the formula: \( \text{Interest Amount} = \text{Current Balance} \times \text{Monthly Interest Rate} \).
• Adding this interest to the current balance increases the total amount in the savings account.

Optimal interest calculation is key, as even small errors can lead to significant discrepancies over time. This concept is vital for creating financial programs that require accurate projections and balance updates.

User Input and Output

User input and output are fundamental to interactive programs. In the context of our program, they allow users to introduce personal financial data and receive feedback on their financial position.

• Inputs are usually straightforward queries for data like the starting balance, deposits, withdrawals, and interest rate.
• The ouput is a concise display of the calculated current balance.

Correctly capturing input and displaying output help create a seamless user experience. This feedback loop ensures users can provide necessary information and understand results, which is integral to effectively using any financial software.