Answer
$\$ 1,226.43$
Work Step by Step
The present value of an investment earning interest at$\\$
an annual rate of $\mathrm{r}=-4\%=-0.04\ \ \ \ $(depreciation=negative rate) $\\$
compounded m$=1$ times per year $\\$
for a period of t$=5$ years,$\\$
with future value FV$=1000$ is$\\\\$
$ PV=\displaystyle \frac{FV}{(1+\frac{r}{m})^{mt}}=\frac{1000}{(1+\frac{-0.04}{1})^{1(5)}}\approx$1226.43302007$\\\\$
rounded to the nearest cent: $\$ 1,226.43$
