How to understand the counterintuitive fact that you can calculate an infinite geometric series?

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If you add and multiply infinitely, it keeps increasing, doesn't it? And yet we have this formula, if $0<r<1, S_∞ = \dfrac{a_1}{1 - r}$. I can apply this formula, but can't wrap my head around it.

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The above image is a visual representation of the infinite geometric series $$\frac{1}{2} + \frac{1}{4} + \frac{1}{8} + ... = \sum_{n = 1}^\infty \left(\frac{1}{2} \right)^n$$

Think about it like this: As $n$ gets larger and larger, you have a consistently smaller area of the bigger square left. So when $n$ approaches infinity, there is nothing in the bigger square left, and the sum of the parts $=$ the area of the square i.e. $1$.

It is also important to consider the significance of the condition $-1 < r < 1$ here. If you had $r = 2$ for example, you would get the following series: $$2 + 4 + 8 + 16 + ...$$ This would indeed fit with your idea of adding infinitely many terms, where the series grows progressively larger and larger.

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Alternative demonstration around the series $$T = 1 + \frac{1}{2} + \frac{1}{4} + \frac{1}{8} + \cdots .$$

Let $S_n$ denote $~\displaystyle \sum_{i = 0}^n \frac{1}{2^i} ~: ~n \in \Bbb{Z_{\geq 0}}.$

It is easy to show, by induction, that $~\displaystyle S_n = 2 - \frac{1}{2^n}.$

Therefore, $~\displaystyle \lim_{n \to \infty} S_n = 2.$

Further, by definition, $~\displaystyle T = \lim_{n \to \infty} S_n.$