Choice B is the correct answer. The rate is found from the factor $b = 1+r$.

1. Identify Factor: $b = 1.07$.
2. Solve for r: $1 + r = 1.07 \implies r = 0.07$.
3. Convert: $0.07 = 7\%$.

💡 Strategic Tip: Subtract 1 from the base to get the rate as a decimal.

Choice A is incorrect because it confuses the decimal with the percentage. Choice C is incorrect because 107% would mean $b=2.07$. Choice D is incorrect because 0.07% is $0.0007$.