2009 Pascal Problem 18

Every 4 years, the population of the town of Arloe doubles. On December 31, 2008, the population of Arloe was 3456. What was the population on December 31, 1988?

\textbf{(A)}\ 54\quad \textbf{(B)}\ 576\quad \textbf{(C)}\ 216\quad \textbf{(D)}\ 108\quad \textbf{(E)}\ 864

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Full credit to this problem is given to the CEMC, you may view all Pascal contests here.