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Moderate

Interest on Rent

GMAT-YONMTG

Bobby rents a room from Joe's house for the summer. He pays a certain amount of rent monthly, but also has to pay additional interest because Bobby is irresponsible. For every month Bobby is late on his payment, he must pay $10\%$ more the next month.

If Bobby is late every month and pays $\$726$ for the third month's rent, how much was the initial base rate?

A

$\$594$

B

$\$596$

C

$\$600$

D

$\$606$

E

$\$618$