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
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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
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Solution:Vincen wrote: ↑Tue Oct 20, 2020 2:32 amIn 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
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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