In a certain fund, $40$ percent of the money is invested in stocks, and of that portion, $20$ percent is invested in

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Vincen: Legendary Member; Posts: 2898; Joined: Thu Sep 07, 2017 2:49 pmFollowed by: 5 members; Thanked: 6 times

by Vincen » Tue Oct 20, 2020 2:32 am

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In a certain fund, $40$ percent of the money is invested in stocks, and of that portion, $20$ percent is invested in preferred stocks. If the mutual fund has $\$576$ invested in preferred stocks, what is the total amount of money invested in the fund?

A. $\$960$
B. $\$1440$
C. $\$2880$
D. $\$4608$
E. $\$7200$

Answer: E

Source: GMAT Paper Tests

Source: Beat The GMAT — Problem Solving | Tue Oct 20, 2020 2:32 am

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Re: In a certain fund, $40$ percent of the money is invested in stocks, and of that portion, $20$ percent is investe

by Scott@TargetTestPrep » Tue Oct 27, 2020 9:05 am

Vincen wrote: ↑
Tue Oct 20, 2020 2:32 am
In a certain fund, $40$ percent of the money is invested in stocks, and of that portion, $20$ percent is invested in preferred stocks. If the mutual fund has $\$576$ invested in preferred stocks, what is the total amount of money invested in the fund?

A. $\$960$
B. $\$1440$
C. $\$2880$
D. $\$4608$
E. $\$7200$

Answer: E

Source: GMAT Paper Tests

Solution:

We can let the total money in the fund = x. We can create the equation:

0.2(0.4x) = 576

0.08x = 576

8x = 57600

x = 7200

Answer: E

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