javaprecisiondivisionbigdecimalfinancial

ArithmeticException thrown during BigDecimal.divide

I thought java.math.BigDecimal is supposed to be The Answer™ to the need of performing infinite precision arithmetic with decimal numbers.

Consider the following snippet:

import java.math.BigDecimal;
//...

final BigDecimal one = BigDecimal.ONE;
final BigDecimal three = BigDecimal.valueOf(3);
final BigDecimal third = one.divide(three);

assert third.multiply(three).equals(one); // this should pass, right?

I expect the assert to pass, but in fact the execution doesn't even get there: one.divide(three) causes ArithmeticException to be thrown!

Exception in thread "main" java.lang.ArithmeticException:
Non-terminating decimal expansion; no exact representable decimal result.
    at java.math.BigDecimal.divide

It turns out that this behavior is explicitly documented in the API:

In the case of divide, the exact quotient could have an infinitely long decimal expansion; for example, 1 divided by 3. If the quotient has a non-terminating decimal expansion and the operation is specified to return an exact result, an ArithmeticException is thrown. Otherwise, the exact result of the division is returned, as done for other operations.

Browsing around the API further, one finds that in fact there are various overloads of divide that performs inexact division, i.e.: 

final BigDecimal third = one.divide(three, 33, RoundingMode.DOWN);
System.out.println(three.multiply(third));
// prints "0.999999999999999999999999999999999"

Of course, the obvious question now is "What's the point???". I thought BigDecimal is the solution when we need exact arithmetic, e.g. for financial calculations. If we can't even divide exactly, then how useful can this be? Does it actually serve a general purpose, or is it only useful in a very niche application where you fortunately just don't need to divide at all?

If this is not the right answer, what CAN we use for exact division in financial calculation? (I mean, I don't have a finance major, but they still use division, right???).

Solution

  • If this is not the right answer, what CAN we use for exact division in financial calculation? (I mean, I don't have a finance major, but they still use division, right???).

    Then I was in primary school1, they taught me that when you divide by 1 by 3 you get a 0.33333... i.e. a recurring decimal. Division of numbers represented in decimal form is NOT exact. In fact for any fixed base there will be fractions (the result of dividing one integer by another) that cannot be represented exactly as a finite precision floating point number in that base. (The number will have a recurring part ...)

    When you do financial calculations involving division, you have to consider the what to do with a recurring fraction. You can round it up, or down, or to the nearest whole number, or something else, but basically you cannot just forget about the issue.

    The BigDecimal javadoc says this:

    The BigDecimal class gives its user complete control over rounding behavior. If no rounding mode is specified and the exact result cannot be represented, an exception is thrown; otherwise, calculations can be carried out to a chosen precision and rounding mode by supplying an appropriate MathContext object to the operation.

    In other words, it is your responsibility to tell BigDecimal what to do about rounding.

    EDIT - in response to these followups from the OP.

    How does BigDecimal detect infinite recurring decimal?

    It does not explicitly detect the recurring decimal. It simply detects that the result of some operation cannot be represented exactly using the specified precision; e.g. too many digits are required after the decimal point for an exact representation.

    It must keep track of and detect a cycle in the dividend. It COULD HAVE chosen to handle this another way, by marking where the recurring portion is, etc.

    I suppose that BigDecimal could have been specified to represent a recurring decimal exactly; i.e. as a BigRational class. However, this would make the implementation more complicated and more expensive to use2. And since most people expect numbers to be displayed in decimal, and the problem of recurring decimal recurs at that point.

    The bottom line is that this extra complexity and runtime cost would be inappropriate for typical use-cases for BigDecimal. This includes financial calculations, where accounting conventions do not allow you to use recurring decimals.

    1 - It was an excellent primary school. You may have been taught this in high school.

    2 - Either you try to remove common factors of the divisor and dividend (computationally expensive), or allow them to grow without bounds (expensive in space usage and computationally expensive for subsequent operations).