Laura took out a charge account at the General Store and agreed to pay 5% 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?	Pick one
A) $ 2.10 B) $ 36.75 C) $ 37.16 D) $ 38.10 E) $ 38.80

Rationale: "principal that is amount taken by laura at year beginning = 35 $ rate of interest = 5 % interest = ( 5 / 100 ) * 35 = 1.75 $ total amount that laura owes a year later = 35 + 1.75 = 36.75 $ answer b"
Answer: B