In my finance course, I had a question on my quiz asking "how much will you have in 10 years if you invest

In my finance course, I had a question on my quiz asking "how much will you have in 10 years if you invest?
5,000 a year and earn 3%?'' I don't need to know the answer to this because I already solved it, but I wanted to know how do we determine that rate of 3%? To be more specific, was this 3% just randomly assigned? Is it 3% of your earnings or what?
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The 3% was randomly assigned, but it's supposed to represent what the annual return would be if you invested it in CDs or some other type of savings.