Harvey owns a restaurant. He had $425$ customers at the end of the second quarter, $455$ customers at the beginning of the second quarter, and $17$ new customers in the second quarter. What is his customer retention rate for the second quarter?

Full solution

Q. Harvey owns a restaurant. He had

425

customers at the end of the second quarter,

455

customers at the beginning of the second quarter, and

17

new customers in the second quarter. What is his customer retention rate for the second quarter?

Determine beginning customers: Determine the number of customers at the beginning of the second quarter. Harvey had $455$ customers at the beginning of the second quarter.
Determine new customers: Determine the number of new customers during the second quarter. $\newline$ Harvey gained $17$ new customers in the second quarter.
Calculate end customers: Calculate the number of customers at the end of the second quarter excluding new customers. $\newline$ To find the number of customers who were retained from the beginning of the quarter, we subtract the number of new customers from the total number at the end of the quarter. $\newline$ $425$ (end of quarter) - $17$ (new customers) = $408$ customers retained.
Calculate retention rate: Calculate the customer retention rate. $\newline$ The customer retention rate is the number of customers retained divided by the number of customers at the beginning of the quarter, multiplied by $100$ to get a percentage. $\newline$ $\frac{408 \text{ customers retained}}{455 \text{ customers at the beginning}} \times 100 = \text{retention rate}$ .
Perform division and multiplication: Perform the division and multiplication to find the retention rate. $\newline$ $(408 / 455) \times 100 \approx 89.67\%$