Jason has a credit card that charges 2% interest on unpaid balances each month. He spent $300, but only makes the minimum payment of $30 a month when the bill is due. What is the balance on his credit card account after making his payment at the end of the fourth month?

Each month, multiply the unpaid balance by 1.02 to add 2% interest, then subtract the $30 payment. The balances after payments are $276, $251.52, $226.55, and $201.08. Therefore, after the fourth payment, Jason owes $201.08, choice A.

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