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Affirm·Software Engineer·Technical Phone Screen·Intermediate

Intermediate
May 2026

Summary

Affirm SWE interview with a classic debt settlement problem. The algorithmic depth required here was higher than I expected for a phone screen, especially the follow-up pushing into exponential-time DP territory.

Questions Asked (2)

Q1

Given a list of users with net balances (positive means they are owed money, negative means they owe money), find the minimum number of transactions required to settle all debts so every balance reaches zero.

Algorithms & Data StructuresTechnical Trade-offs
Author's notes

I jumped straight to greedy, pairing the biggest creditor with the biggest debtor each round.

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AI HintsAI Generated

Suggested Approach

Start by clarifying the problem constraints and confirming that the goal is to minimize the number of transactions, not the amount transferred. Then, explain that this is a classic debt settlement problem that can be modeled as a graph where each transaction reduces the net balance of two users, and the optimal solution involves matching debtors and creditors greedily or using backtracking for exact minimization.

Pro tip: Mention that while the greedy approach (always settling the largest debt with the largest credit) often yields the minimum number of transactions, it is not always optimal; for exact minimization, backtracking with pruning is needed, but in practice, the greedy approach is efficient and widely accepted.

1. Clarify the problem

Ask questions to confirm input format, constraints (e.g., number of users, balance ranges), and whether the goal is to minimize the number of transactions or the total amount transferred. Also, confirm if partial settlements are allowed.

2. Model as a graph or net balance list

Compute the net balance for each user by summing their credits and debits. Separate users into debtors (negative balance) and creditors (positive balance). This reduces the problem to matching debtors with creditors.

3. Choose an algorithm

Discuss greedy approach: repeatedly match the largest debtor with the largest creditor, settling the minimum of the two amounts. For exact minimization, mention backtracking: try all possible matches and prune when the current transaction count exceeds the best found.

4. Analyze complexity and trade-offs

Explain that the greedy approach runs in O(n log n) due to sorting, while backtracking can be exponential in the worst case. Discuss that greedy is not always optimal but is efficient and often used in practice; exact minimization may be NP-hard.

5. Provide an example and edge cases

Walk through a small example to illustrate the algorithm. Mention edge cases: all balances zero, one debtor and one creditor, multiple users with same balances, and floating-point precision issues.

Key Points to Mention

  • Net balance calculation and separation into debtors and creditors.
  • Greedy algorithm: sort balances, use two pointers to match largest debtor and creditor.
  • Backtracking for exact minimum transactions with pruning.
  • Time complexity: O(n log n) for greedy, exponential for backtracking.
  • Trade-off between optimality and efficiency; greedy is not always optimal but practical.
  • Edge cases: zero balances, single transaction, precision issues with floating-point numbers.

AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.

Q2

Implement an O(2^N) DP solution over balance subsets and explain why the greedy approach can produce a suboptimal result.

Algorithms & Data StructuresTechnical Trade-offs
Author's notes

This follow-up is where things got uncomfortable.

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AI HintsAI Generated

Suggested Approach

First, clarify the problem: given a set of items with weights, determine if a balance (subset sum) can be achieved. Then, explain the O(2^N) DP over subsets by enumerating all possible subsets and checking if any subset sums to the target. Finally, construct a counterexample where the greedy approach (e.g., picking largest weights first) fails to find a valid subset even though one exists.

Pro tip: Mention that while O(2^N) is exponential, it's optimal for exact subset sum unless P=NP, and that greedy can fail due to lack of matroid structure. This shows awareness of complexity theory and algorithmic trade-offs.

1. Clarify the problem

Restate the problem: given a set of weights and a target balance, decide if a subset sums exactly to the target. Confirm that 'balance subsets' refers to subset sum.

2. Describe the O(2^N) DP approach

Explain that you can iterate over all 2^N subsets, compute each subset's sum, and check if any equals the target. This is a brute-force DP over subsets, often implemented via bitmask or recursion.

3. Explain why greedy fails

Greedy (e.g., always pick the largest weight that fits) can fail because it makes locally optimal choices that may preclude a global solution. Provide a concrete counterexample, such as weights [4,3,3] and target 6: greedy picks 4, then can't reach 6, but 3+3 works.

4. Discuss complexity and alternatives

Acknowledge that O(2^N) is exponential but exact; mention that pseudo-polynomial DP (O(N*sum)) exists but may be infeasible for large sums. Emphasize that greedy is not correct for subset sum in general.

Key Points to Mention

  • Subset sum is NP-complete, so no polynomial-time algorithm is known unless P=NP.
  • O(2^N) DP enumerates all subsets, which is optimal for exact solution in worst case.
  • Greedy fails because subset sum lacks the greedy-choice property and optimal substructure in the required sense.
  • Counterexample: weights [4,3,3], target 6; greedy picks 4 then fails, but 3+3 succeeds.
  • Bitmask DP or recursive backtracking can implement the O(2^N) solution.
  • Trade-off: exponential time vs. pseudo-polynomial DP (O(N*sum)) which depends on sum magnitude.

AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.