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