Problem 3(3): The soccer player Messi is estimated to have earned $127mil. in 2019. He currently is 32 years old. Suppose that he will be able to play professionally for another 5 years, and then he...

Problem 3(3):

The soccer player Messi is estimated to have earned $127mil. in 2019. He currently is 32 years old. Suppose that he will be able to play professionally for another 5 years, and then he retires and will make $1 of income from then on for 40 years.  Within the next 5 years, his income will decline by 2% per year. What is the present value of Messi’s stream of future salaries, if the annual interest rate is 2%?