Laura took out a charge account at the General Store and agreed to pay 7% simple annual interest. If she charges $35 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 answers
A) $ 2.10 B) $ 37.10 C) $ 37.45 D) $ 38.10 E) $ 38.80

Rationale: "principal that is amount taken by laura at year beginning = 35 $ rate of interest = 7 % interest = ( 7 / 100 ) * 35 = 2.45 $ total amount that laura owes a year later = 35 + 2.45 = 37.45 $ answer c"
Answer: C