### Compound Interest = $10,000 x (1 + 5%)^3 - $10,000 = $1,576.25
So you will have a total of $11,576.25 ($10,000 principal + $1,576.25 interest) at the end of the 3-year term. Notice that the interest earned in the second and third years is based on the principal amount plus the interest earned in the previous year.