There will be three types of passwords. Only one letter, two letters, and three letters. We'll figure out each individually and then use addition.
1 letter passwords are easy: there are 5.
Let's now examine how two letter passwords work. First, look at all passwords that start with "A". We have AA, AE, AI, AO, and AU. For each starting letter, there are five possible combinations. So, 5 x 5 = 25.
The same pattern remains in tact for 3 letter passwords, so 5 x 5 x 5 = 125
125 + 25 + 5, so 155 possible passwords.