4. Mr. Krugen budgets \( \frac{1}{12} \) of his monthly income for investing. If he purchased some stock in a stee company with \( \frac{2}{5} \) of his monthly investment budget what fraction of his total monthly income did spend on stock in the steel company?

Mr. Krugen allocates \( \frac{1}{12} \) of his monthly income for investing. If he spends \( \frac{2}{5} \) of this investment budget on steel company stock, we can determine the fraction of his total income spent. First, calculate his investment in the stock: \[ \text{Amount spent on stock} = \frac{2}{5} \times \frac{1}{12} = \frac{2}{60} = \frac{1}{30} \] So, Mr. Krugen spent \( \frac{1}{30} \) of his total monthly income on the steel company stock. Now, knowing how to budget can make a significant difference in investment. Think of it as creating a fun game where every section of your income is a player on a team! Each player's purpose is clear—investments, savings, and spending—all working together to score financial success. Investing in stocks is not just about buying and holding; it's like playing chess! Understanding the market trends, reading company reports, and knowing when to buy or sell can give you the upper hand. Equip yourself with knowledge and stay updated—it's your strategy guide in the investing game!