Given:

Principle amount \((p):=$5436.22\)

Interest rate\((r)=4\%=\)\(\frac{4}{100}\)\(=0.04\)

interest time \((t)=4\) years 3 months

number of times interest compounded per year(n)=1(given annually compounded)

present value \((A)=?\)

Steps:

Formula for compound interest

\(A=P(1+\frac{r}{n})^{nt}\)

\(\Rightarrow A=5436.22(1+(\frac{0.04}{1})^{1 \cdot 4.25})\)

\(=5436.22(1+0.04)^{4.25}\)

\(=5436.22(1.04)^{4.25}\)

\(A=5436.22(1.181386)\)

\(A=$6422.27\)

present value \((A)=$6422.27\)

option d is the right answer