Assume that RBC has only three segments of customers based on age: (1) 20 35 years old, (2) 36 60 years old, and (3) 61 to 75 years old. The distribution of average annual customer profitability in dollars for each of the three segments is given in

Table TN-A below. What is the profit potential or lifetime value of the niece if the bank estimates that she is in the 30th percentile for current profitability? Recall that the niece is currently aged 23. Use a discount rate of 8% and assume that there is a 5% chance of customer attrition each year. Discuss about the limitation of this percentile method for CLV.

Percentile	25 -- 35 years old	36 -- 60 years old	61 -- 75 years old
10	-300	-100	100
20	-250	0	300
30	-100	500	900
40	-50	700	1300
50	0	900	1700
60	50	1100	2000
70	100	1300	2300
80	200	1500	2500
90	300	1700	2700
100	450	1900	2900