If chu takes out an unsubsidized personal loan of $3,000 at 7 percent interest, which he does not have to begin repaying for 12 months, how much will the total amount of the loan be when he begins repayment? $3,000.00 $3,210.00 $210.00 $2,520.00

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: 
where
is the final amount 
is the initial amount 
is the interest rate in decimal form 
is the time in years 

We know for our problem that  and . Since a year has 12 months, . Lets replace those values in our formula:





We can conclude that when Chu begins repayment, he will have to pay $3,210.00