Continuous exponential functions

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In my book, it makes it appear that any continuous exponential function, such as those regarding money, do not follow the traditional formula of $$\text{growth} = (1+\text{return})^x $$ Rather, it gives the function $$(1+\frac{\text{return}}{n})^n $$ for any continuous function. Can someone explain why this is, and does this only apply in the case of compounding money?

Thanks!