CASE STUDY 2 - TIME VALUE OF MONEY It is now January 1, 2005. Sylvester and Jerry are cousins who were both born on January 1, 1975. Both turned 30 today. Their grandfather gave Sylvester RM4,000 on his 25th birthday, January 1, 2000, putting the funds into a trust that will be paid to Sylvester on his 70th birthday, January 1, 2045. Each year since 2000, the grandfather put an additional RM4,000 in the account on Sylvester's birthday, and the grandfather's own trustee will continue making the RM4,000 payments until January 1, 2045, when a 46th and final RM4,000 contribution will be made on Sylvester's 70th birthday. The grandfather want Sylvester to work, not be a "trust fund baby," but he also wants to insure that Sylvester is well provided for in his old age. The grandfather has until now has been disappointed with Jerry, hence has not given him anything, but they recently reconciled, and the grandfather has decided to make an equivalent provision for Jerry. He will make the first payment to a trust for Jerry today, and he has instructed his trustee to make additional annual payments each year until January 1, 2045, when the 41st and final payment will be made. If both trusts earn an annual return of 10%, how much must the grandfather put into Jerry's trust to enable him to receive the same amount as Tom on January 1, 2045, when they reach age 70? (10 Marks]