Why Do Unassigned Local Variables Cause Compilation Errors?

Compilation Errors from Uninitialized Local Variables

Programming languages often flag "unassigned local variables"—variables declared but not given a value before use—as compilation errors. This usually happens with variables inside functions or methods that lack assignment before being accessed.

The example code shows this error for annualRate, monthlyCharge, and lateFee. The compiler detects these variables are declared but remain uninitialized before calculations.

The solution is to assign values to these variables within every branch of the credit plan's if/else statement. This guarantees initialization in every execution path, allowing compilation to proceed.

A well-structured if/else block, as shown in the solution, ensures at least one branch executes, initializing all variables. Alternatively, a switch statement offers a more concise approach for managing multiple credit plan options.

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