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Polynomial is an expression involving several terms.

Let us assume that r is the fixed percent rate of increase.

Let P be the amount.

At the end of one year it will be P(1+r/100)

At the end of two years it will be p(1+r/100)(1+r/100) =P(1+r/100)^2= P(1+2*r/100+(r/100)^2)

At the end of three years it will be p(1+r/100)^2*(1+r/100) =P(1+r/100)^3= p(1+3*r/100+3*(r/100)^2+(r/100)^3)

all these are reflecting polynomial.

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