Your Neighbour Makes You the Following Offer

Your neighbour makes you the following offer. He would like to borrow $10,000 today. He will repay the $10,000 by making 10 yearly payments with the first payment being made at the end of this year. If the payments are to grow by 10% each year and the appropriate discount rate is 12%, how much will your neighbour have to pay at the end of the first year?

A) $108.98
B) $1,212.97
C) $1,627.45
D) $1,769.84
E) $1,867,94