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