$\noindent The interest is paid semi-annually at 3\% per-period. E.g. If you started with \$1, it'd grow to $\$ 1.03$ after 6 months, then $\$ \left(1.03)\times 1.03$ after 1 year, then $\$ 1.03 ^3$ after $18$ months, etc. In other words, one dollar will grow to $R^n$ dollars after $n$...