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Liverpool Football Club bought Cristiano Ronaldo for $25 million, and after 5 years sold him for $65 million. A player’s value, when in his early 20’s (20-25) increases by 3 million every year till 25 years of age, and decreases by $2 million every year after that. What was Liverpool’s profit/loss when they sold Ronaldo, assuming value of money remained same for 5 years? He was 25 when he left the club.

Liverpool Football Club bought Cristiano Ronaldo for $25 million, and after 5 years sold him for $65 million. A player’s value, when in his early 20’s (20-25) increases by 3 million every year till 25 years of age, and decreases by $2 million every year after that. What was Liverpool’s profit/loss when they sold Ronaldo, assuming value of money remained same for 5 years? He was 25 when he left the club. Correct Answer $25 million profit

Ronaldo’s value when he entered the club was $25 million 

When he left he was 25, therefore, so he spent 5 years in the Liverpool and his value increase every season

His value when he left the club = $25 million + (5 × $3 million) = $40 million 

Ronaldo’s transfer price = $65 million 

Profit of Liverpool Football Club = $65 - $40 = $25 million

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