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A community foundation directs 3/5 of its annual donations to grant programs. Of the donations that remain, 2/3 are paid to staff salaries. What fraction of the foundation's total annual donations is paid to staff salaries?
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Correct answer
B
Grants take 3/5 of total donations, so the remainder is 1 − 3/5 = 2/5 of the total. Staff salaries take 2/3 of that remainder, not 2/3 of the original total: (2/3) × (2/5) = 4/15 of total donations.
The key step is that the 2/3 applies to the remaining 2/5, not to the whole or to the grant share of 3/5.
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