Question

Relations

Answer 1

Geometric sequence:
S = A1 ( 1 - r^n ) / ( 1 -r)
applied in Compound interest formula:
A = P ( 1 + r ) ^n
with A as Sum accumulated, P as first element, ratio increasing exponentially!

Answer 2

what type of explanation do you want?

Answer 3

Compound interest is means interest is earned on the interest portion also. So you have:
P + (P*r) + (P*r + P*r*r) + (P*r + P*r*r + P*r*r*r) + ......

That is a a geometric series when simplified will yield your typical formula:
P(1+r)^n

Answer 4

I may be off some, but the concept is right.