Wilbert's Clothing Stores Just Paid an Annual Dividend of $1

Wilbert's Clothing Stores just paid an annual dividend of $1.20 and increases its dividend by 2.5 percent annually.You would like to purchase 100 shares of stock in this firm but realize that you will not have the funds to do so for another three years.If you desire a rate of return of 10 percent,how much should you expect to pay for 100 shares when you can afford to buy this stock? Ignore trading costs.

A) $1,640
B) $1,681
C) $1,723
D) $1,766
E) $1,810