In order to calculate the total spending in the town each year, first, multiply by the 70% that is spent within the town,
[tex]\begin{gathered} \text{\$}4,000,000\times70\% \\ \text{\$}4,000,000\times0.70 \\ =\text{\$}2,800,000 \end{gathered}[/tex]
Also, multiply by 70% of the amount people will spend after they receive it in town,
[tex]\begin{gathered} \text{ \$}2,800,000\times70\% \\ \text{ \$}2,800,000\times0.70 \\ =1,960,000 \end{gathered}[/tex]
Answer:
The total spending in the town each year is $1,960,000
