annual compounded rate of return of 4%? Problem 7 (6 marks) Ben & Ella have $40,000 today and want to invest these funds to use in 5 years' time towards the purchase of a cottage on the Northumberland Straight. Ben wants to invest the funds in an investment expected to earn 5% compounded annually over the next 5 years. Ella wants to invest in a riskier investment which is expected to earn 9% compounded annually over the next 5 years. How much more would they have to invest today in the less risky investment to achieve the same value as they would earn by holding the riskier investment in 5 years' time?