Since this is an unsubsidized personal loan, it does not has a grace period. In other words, Chu will have to pay interest for twelve months prior to the beginning of the loan's repayment.
To fin how much he will have to pay after 12 months, we are going to use the formula for simple interest: [tex]A=P(1+rt)[/tex]
where
[tex]A[/tex] is the final amount
[tex]P[/tex] is the initial amount
[tex]r[/tex] is the interest rate in decimal form
[tex]t[/tex] is the time in years
We know for our problem that [tex]P=3000[/tex] and [tex]r= \frac{7}{100} =0.07[/tex]. Since a year has 12 months, [tex]t=1[/tex]. Lets replace those values in our formula:
[tex]A=P(1+rt)[/tex]
[tex]A=3000[1+(0.07)(1)][/tex]
[tex]A=3000(1.07)[/tex]
[tex]A=3210[/tex]
We can conclude that when Chu begins repayment, he will have to pay $3,210.00