I have these two finite geometric series:
$S_n$ = $\sum_{k=0}^n ar^k$
r$S_n$ = $\sum_{k=0}^n ar^{k+1}$
And then we substract both series so:
$S_n$ - r$S_n$ = a - $ar^{n+1}$ //this I understand
$\frac {S_n(1-r)}{1-r}$ = $ \frac{a - ar^{n+1}}{1-r}$ //where does 1-r come from?
Once you have $$S_n - rS_n = a - ar^{n+1}$$ you can factor both sides: $$S_n ( 1 - r) = a(1 - r^{n+1})$$ (If that factorization isn't immediately obvious to you, just redistribute back through and confirm that you get the original expression again).
Now you can divide both sides by $(1-r)$ and get the desired conclusion.