1 . Assume the annual profit from a credit-card customer is year 1 $100, year 2 $125, year 3 $150, year 4$150, year 5, $150, year 6 $200, year 7 $250.

Each year there is a 100% chance of keeping thecustomer and the discount rate is 15%.

What is the present value of this customer over the next seven years?