Tutorial: MCQ (Sec A) ERM18 Q2 A bank has developed a new type of account called the Gold Account. Development and advertising costs were $50,000. At the start of each of the next four years, 1000 customers are expected to open a Gold Account and to pay the bank $300 each year that they use it. Of the 1,000 customers who open a Gold Account, 500 are expected to close the account after one year and 500 after two years. The bank estimates it will cost $400 per customer to administer the Gold Account in the customer's first year reducing to $50 per customer in the second year. Ignoring the time value of money, what is the lifecycle profit per customer of Gold Account? $8.33 $25.00 $12.50 $16.67