A province's Ministry of Social Services has found that both the number of people receiving social assistance and the province's total expenditures on social assistance are proportional to the rate of unemployment. Last August when the provincial unemployment rate was 8.4%, the province provided benefits to 89,300 individuals at a cost of $107.4 million. The forecasted unemployment rate for next August is 7.9%. How many people can the province expect to need social assistance next August? What amount should the province budget for social assistance in August?
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