Problem 2: The GOAT

Christiano Ronaldo just completed a move to the Saudi soccer club Al Nassr for a reported $80,000,000 per year deal with duration two years. Saudi National Bank, where Cristiano receives his annual paychecks at the end of each year, offers interest rates of 9% for every maturity.

1. Estimate the present value of Cristianos contract (assume annual compounding).

2. If Cristiano saves all the money from his contract, estimate the future value of his savings

account at the end of the contract (assume annual compounding).