Take 5,500 and multiply it by 0.03. This will give you 165 as the interest earned. Add that to the 5,500 and you will get 5,615 as the balance at the end of the first year. Since you said that this is compounding, you take your new balance of 5,615 and multiply by 0.03, and then adding that amount onto the 5,615. The total balance in the account after all 5 years is 6,376.01. This is also assuming you do not deposit or withdraw any money from the account.