The amount of savings deposited by Cindy in the current scenario is $8,277.
Savings is the amount which is deposited by the account holders in their bank accounts.
Given values:
Future savings: $10,000
Interest rate: 5%
Number of years: 4
Computation of present amount of savings:
[tex]\rm\ Present \rm\ savings=\frac {\rm\ Future \rm\ savings}{(1+ \rm\ Interest \rm\ rate)^4} \\\rm\ Present \rm\ savings=\frac{\$10,000}{(1+0.05)^4} \\\rm\ Present \rm\ savings=\frac{\$10,000}{0.82770} \\\rm\ Present \rm\ savings=\$8,277[/tex]
Therefore, if the amount of $10,000 at the rate of 5% to be received after four years, then the investment of $8,277 is to done.
Learn more about the present value in the related link:
https://brainly.com/question/17322936
#SPJ1
