In a certain fund, 40 percent of the money is invested in

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BTGmoderatorLU: Moderator; Posts: 2505; Joined: Sun Oct 15, 2017 1:50 pm; Followed by:6 members

In a certain fund, 40 percent of the money is invested in

by BTGmoderatorLU » Sat Jul 20, 2019 5:33 pm

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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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Source: Beat The GMAT — Problem Solving | Sat Jul 20, 2019 5:33 pm

Darkknightreturning: Junior | Next Rank: 30 Posts; Posts: 21; Joined: Mon Jul 01, 2019 8:40 am

by Darkknightreturning » Sat Jul 20, 2019 9:09 pm

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.

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Scott@TargetTestPrep: GMAT Instructor; Posts: 8086; Joined: Sat Apr 25, 2015 10:56 am; Location: Los Angeles, CA; Thanked: 43 times; Followed by:29 members

by Scott@TargetTestPrep » Mon Jul 29, 2019 3:17 pm

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