Cara took out a charge account at the General Store and agreed to pay 5% simple annual interest. If she charges $54 on her account in January, how much will she owe a year later, assuming she does not make any additional charges or payments? Choose one.
A) $ 55.70 B) $ 56.20 C) $ 56.70 D) $ 57.20 E) $ 57.70

Rationale: 1.05 * $ 54 = $ 56.70 the answer is c .
Answer: C