Steve's customer retention rate for September is found by determining the end of month customers (130), beginning customers (120), and new customers (20). What is his retention rate?

To calculate Steve's customer retention rate, you can use the formula for retention rate, which is:

[

\text{Retention Rate} = \frac{\text{Beginning Customers} - \text{Lost Customers}}{\text{Beginning Customers}} \times 100

]

In this scenario, you start with 120 beginning customers and end with 130 customers. Since there are 20 new customers, you can determine the number of lost customers during the month.

First, calculate the total customers accounted for by subtracting the new customers from the end of the month total:

[

\text{Lost Customers} = \text{Beginning Customers} + \text{New Customers} - \text{End Customers}

]

[

\text{Lost Customers} = 120 + 20 - 130 = 10

]

Now, substitute the figures back into the retention rate formula:

[

\text{Retention Rate} = \frac{120 - 10}{120} \times 100 = \frac{110}{120} \times 100 \approx 91.67%

]

When rounded to the nearest whole number, the retention rate is 92%. Therefore, the answer provided is correct