Are geometric progressions and compound interest the same thing?

Question

Mathematics

Are geometric progressions and compound interest the same thing?

Answer 1

No. Write down the formulas, they will be different. In the progression, the degree of the coefficient q is added each time. The percentage is multiplied by (1+q):

A+Aq+Aq^2+Aq^3+...
A+Aq+(Aq+Aq^2)+(Aq+2*Aq^2+Aq^3)+...

Answer 2

The amount of the final compound interest payment is
S[n] = S[0] * (1 + percent)^n
which corresponds to the nth member of the geom. progression, with initial point S[0] and coefficient (1 + percent).