The MagicSoft software company has a proposal to the city council of Alva, Florida, to relocate there. The proposal claims that the

company will generate $3.3 million for the local economy by the $1 million in salaries that will be paid. The city council estimates

that 70% of the salaries will be spent in the local community and 70% of that money will again be spent in the community, and so on.

What is the correct estimate of the amount generated to the local economy?

a. $3.3 million

C. $2.7 million

b. $2.3 million

d. $1.9 million

Please select the best answer from the choices provided