So we start by drawing the timeline of the diagram.

Which this would be divided into intervals or periods

of times or interest periods, similar to what I explained in previous modules.

So from the X axis, and there is only X axis, and then the bars in the Y axis.

Highlighting first the timeline as I explained, with, let's say, the number,

timeline from zero, one, two, three, four, all the way to an end period of time.

This periods could be as I said before days, or weeks,

or months, or quarters, semi annuals or yearly.

Most of the classes, or most of them we used in the examples,

I might be focusing either on monthly or annual.

But I highlighted if we have less or more intervals in that year,

what to do from that APY, from a nominal and effective interest rate.

So this is the first system.

Second is P n

as I said the number of compound periods the interest periods.

P is a present sum of money.

If you remember we talked about P a lot in previous modules and

this is what's the money we have today in hand.

This is the present worth of the money.

And after that I want to highlight another theorem, which will be