2016 AMC 10A Problem 8

Trickster Rabbit agrees with Foolish Fox to double Fox's money every time Fox crosses the bridge by Rabbit's house, as long as Fox pays 40 coins in toll to Rabbit after each crossing. The payment is made after the doubling, Fox is excited about his good fortune until he discovers that all his money is gone after crossing the bridge three times. How many coins did Fox have at the beginning?

\textbf{(A)}\ 20 \qquad\textbf{(B)}\ 30\qquad\textbf{(C)}\ 35\qquad\textbf{(D)}\ 40\qquad\textbf{(E)}\ 45

Full credit goes to MAA for authoring these problems. These problems were taken on the AOPS website.