How can I understand these operations and what's its formula in the Millionaire Fastlane Book? Is it compound interest formula?

[manuelortizus]

Examine these pathetically common examples. Assume a 5% savings rate on gross salary and an annual investment yield of 8% per year. We’ll exclude taxes and inflation.

Salary @ $25,000/yr, save $1,250/year, invested over 40 yrs @ 8% = $362,895
Salary @ $50,000/yr, save $2,500/year, invested over 40 yrs @ 8% = $725,791
Salary @ $75,000/yr, save $3,750/year, invested over 40 yrs @ 8% = $1,088,686
Salary @ $100,000/yr, save $5,000/year, invested over 40 yrs @ 8% = $1,451,581
Salary @ $150,000/yr, save $7,500/year, invested over 40 yrs @ 8% = $2,177,132

 

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[Paydette]

Yes...basically what you end up either at 8% growth per year