QUESTION 4 A professional football player is in the process of negotiating his contract with a football team The team's initial offer (a 3-year contract) is this - the player will receive a monthly salary of $30,000 in the first year with the team. In the second year, his monthly salary will be increased to $50,000 and in the third year of the contract, he will be paid a salary of $80,000 per month (in all 3 years the salary will be paid at the end of each month). The player did not quite like these terms and hence would like to make a counter-offer. He would like his salary under the following terms: On a weekly, instead of monthly, basis. Salary to be paid at the beginning of each week, instead of the end of each month. The salary amount will be one constant (same) amount throughout the 3 year contract period, instead of different amounts in each year. Help this player to calculate this (weekly) salary amount that can be considered as equivalent to the initial offer by the football team. For the purpose discounting and/or compounding, use an annual rate of 6%. Hint: Start by calculating the present value of the offered contract assuming monthly compounding. Then compute the proposed weekly salary amount assuming weekly compounding. (10 marks)