← Pinterest Interview Insights
My first instinct was to model it as a graph of who owes whom, which got complicated fast.
First, compute each person's net balance by summing what they paid and subtracting what they owe. Then, use a greedy algorithm to match the largest creditor with the largest debtor, settling as much as possible in each transaction, to minimize the number of payments. This reduces the problem to minimizing cash flow, which is NP-hard in general but the greedy approach works well in practice and is optimal for many cases.
Pro tip: Mention that while the greedy approach is not always optimal, it is widely used and often produces the minimal number of transactions; for exact optimality, you could use backtracking or DP for small groups, but that's exponential. Also, clarify that the problem assumes all debts are settled exactly, with no rounding issues.
For each person, calculate their net balance by adding amounts they paid and subtracting amounts they owe for transactions they were covered by. This gives a list of positive (creditors) and negative (debtors) balances.
Create two lists: one for people with positive balances (creditors) and one for people with negative balances (debtors). Ignore zero balances.
While there are debtors and creditors, take the largest debtor and largest creditor, settle the minimum of their absolute amounts, and record a payment from debtor to creditor. Update their balances and repeat until all are zero.
Collect all recorded payments as the minimal set of transactions needed to settle all balances.
AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.