Answer
$\$ 1,227.74$
Work Step by Step
The present value of an investment earning interest at$\\$
an annual rate of $r=-5\%=-0.05\ \ \ \ $(depreciation=negative rate) $\\$
compounded m$=1$ times per year $\\$
for a period of t$=4$ years,$\\$
with future value FV$=1000$ is$\\\\$
$ PV=\displaystyle \frac{FV}{(1+\frac{r}{m})^{mt}}=\frac{1000}{(1+\frac{-0.05}{1})^{1(4)}}\approx$1227.73766315$\\\\$
rounded to the nearest cent: $\$ 1,227.74$