Gabe and Gabriella are visiting from Brazil. They have fallen in love with Nova Scotia and want to purchase a cottage on the South Shore when they retire in 5 years time. They have $40,000 available today to invest. Gabe wants to invest the funds in an investment expected to earn 5% compounded annually over the next 5 years. Gabriella 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?