Members of Goodlife Gym pay on average $32 once per month in the gym. Variable cost such as towels, soap and shampoo, and disinfectant associated with each customer is $7 per month.

a) GoodLifes retention rate is 91% per year. What is the CLTV of a Goodlifes costumer if an annual rate of interest is 7%? (Hint: use the Traditional formula)

b) Find CLTV if a customer is expected to stay for 3 years. Use the Easy method.

c) Find the CLTV using the Simple formula if the retention rate is 91 %.(0.5 mark)

d) Find the CLTV using the DCF method over 3 years, at 11.25 % compounded quarterly.