Source: GMAT Paper Tests
Ia 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
The OA is E
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In a certain fund, 40 percent of the money is invested in
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BTGmoderatorLU
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Darkknightreturning
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The answer should be E.
Let us assume that the amount invested in the fund be x.
40% of that amount is in stocks. Thus, 0.4x is in the form of stocks.
of that, 20% is in preferred stocks, thus 0.4x*.02=0.08x is in preferred stocks. This amount is equal to $576.
Solving for X, we get X= $7200 which is option E.
Let us assume that the amount invested in the fund be x.
40% of that amount is in stocks. Thus, 0.4x is in the form of stocks.
of that, 20% is in preferred stocks, thus 0.4x*.02=0.08x is in preferred stocks. This amount is equal to $576.
Solving for X, we get X= $7200 which is option E.
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Scott@TargetTestPrep
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We can let the total money in the fund = x. We can create the equation:BTGmoderatorLU wrote:Source: GMAT Paper Tests
Ia 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
The OA is E
0.2(0.4x) = 576
0.08x = 576
8x = 57600
x = 7200
Answer: E
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