The balance will be $6,376.01 in 5 years.
To find this answer, we have to evaluate the following expression:
[tex]5500(1+0.03)^5[/tex]
We start with 5500 and raise it by 3% each year. That is why we included (1 + 0.03) in the middle. Finally, it is raised to the power of 5 because it is compounded for 5 years.
