Delfino's Expects to Pay an Annual Dividend of $1

Delfino's expects to pay an annual dividend of $1.50 per share next year.What is the anticipated dividend for year 5 if the firm increases its dividend by 2 percent annually?

A) $1.50 × (1.02) ¹
B) $1.50 × (1.02) ²
C) $1.50 × (1.02) ³
D) $1.50 × (1.02) ⁴
E) $1.50 × (1.02) ⁵