Answer: • D. 850.00, 850.18, 850.36, 850.54, 850.72,
Step-by-step explanation:
The correct sequence describing Nelson's increasing monthly balance is D. 850.00, 850.18, 850.36, 850.54, 850.72.
This is because the credit card company charges a compound interest of 1.8% per month on the outstanding balance. In this case, Nelson's initial outstanding balance is $850.
To calculate the monthly balances, the interest is added to the previous month's balance. Hence, after one month, the balance will be:
$850 + (1.8% of $850) = $850 + $15.30 = $850.18
Similarly, the balance after two months will be:
$850.18 + (1.8% of $850.18) = $850.18 + $15.30 = $850.36
And so on for the following months. Therefore, the correct sequence describing Nelson's increasing monthly balance is option D.