samirashok try to look at it in this manner:
samirashok wrote:
M persuaded x friends to donate $400 each to her charity fund, and then each of these x friends persuaded x more people to donate $400 to the charity fund.
Step 1: x friends donated 400 translates into 400*x=400x---(1)
Step 2:
Each x gets x more people , this means x*x=x^2These people also contribute 400. =>400(x^2)---(2)
Total Money accummulated=(1) +(2)= 400x+400(x^2)
Taking 400 common, we get
400(x+x^2)