My friend lost a bet with me and now owes me money. However, he is broke and will pay me in increments. $500 in two years, $400 in 4 years, and finally, $1000 in ten years, with an interest rate 3.2%. How much money did he bet today (present value)?

If you could, please show the formula and how you got the answer. The answer we are given is $1,551.92 and I'm confused on how to get there. Thanks!