It appears they have the 5% annual raise compounded monthly for 5 years !!!. This is the formula used to arrive at their number: FV =P{[1 + R]^N - 1/ R} =30,000 x {[1 + 0.0512]^5 - 1 / 0.0512}
FV = $30,000 x {[ 1.283591288862 - 1] / 0.0512}
FV = $30,000 x {0.283591288862 / 0.0512}
FV = $30,000 x 5.5388923606..........
FV = $166,166.77 - the small discrepancy is due to rounding off the interest rate to 2 decimal places.