Alice took out a charge account at the General Store and agreed to pay 3% simple annual interest. If she charges $40 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 options:
A) $41.20 B) $41.60 C) $42.00 D) $42.40 E) $42.80
1.03*$40=$41.20   The answer is $41.20.1.03* 40= 
<gadget id="calculator">1.03* 40</gadget>
<output>41.2</output>
$41.20   The answer is $41.20.
<result>A</result>
Alice took out a charge account at the General Store and agreed to pay 3% simple annual interest. If she charges $40 on her account in January, how much will she owe a year later, assuming she does not make any additional charges or payments?