Diana took out a charge account at the General Store and agreed to pay 7% simple annual interest. If she charges $75 on her account in January, how much will she owe a year later, assuming she does not make any additional charges or payments?  Choose the correct choice from the following
A) $ 79.25 B) $ 79.50 C) $ 79.75 D) $ 80.00 E) $ 80.25

Rationale: 1.07 * $ 75 = $ 80.25 the answer is e .
Answer: E