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

[Vincen]

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

[Scott@TargetTestPrep]

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