I just started learning Java and I installed JDK on my computer, but now I am trying the SIMPLIST of Java and its not compiling. I installed JDK on C:/Java/jdk7/
Your source code is OK.
Error log means could not find the class included tools.jar. Tools.jar is always included JDK.
So, I guess you use a wrong JDK. So, you try to write javac full path you installed.
example) "C:\Program Files\java\jdk1.7.0_25\bin\javac" test.java (windows)
If it has worked, JDK in the path variable is wrong. So, you add the path "C:\Program Files\java\jdk1.7.0_25\bin\"(e.g) to the path variable.
(See http://www.computerhope.com/issues/ch000549.htm)
If it doesn't worked, you check ...\jdk1.7.0_25\lib\tools.jar. If it doesn't exists, it's wrong. So, you retry to install.
If it exists, uhmmm, I don't know. I recommend re-install to you.