GMAT Prep: Simple but stumped me!

[rookieingmat]

A certain library assesses fines for overdue books as follows: on the 1st day that a book is overdue, the total fine is $0.10. For each additional day that the book is overdue, the total fine is either increased by $0.30 or doubled, whichever results in the lesser amount.

What is the total fine for a book on the fourth day it is overdue?

A. $0.60
B. $0.70
C. $0.80
D. $0.90
E. $1.00

Looks simple, but I got it wrong. Can somebody try?

[gmataspirant]

Anwer E i.e. 1.00 ?

If it doubles the value would be the following

1st day ---> .10
2nd day ---> .10 + .20
3rd day ----> .30 + .60
4th day ----> .90 + 1.80 = 2.70

If fine is increased by .30, the calculation would be the following

1st day --> .10
2nd day --> .10 + .30
3rd day --> .40 + .30
4th day --> .70 + .30 = 1.00

Comparing 2.70 and 1.00, 1.00 is less hence the answer.

[rookieingmat]

Thanks for trying. But, E is not the correct answer.

I will wait for someone to try it out before I give out the answer. I know the answer, but don't know the logic. Thats the reason for posting this question.

[gmataspirant]

It should be "B" because on the fourth day the due would 70 cents. On the fifth day the due would be 1.00.

I hope that this one is correct.

[rookieingmat]

Thats the correct answer. Thanks, GMAT Aspirant.

[deemac504]

$0.70 was my guess as well.