gsm8k-0002

# GSM8K Problem 3

Josh decides to try flipping a house.  He buys a house for $80,000 and then puts in $50,000 in repairs.  This increased the value of the house by 150%.  How much profit did he make?

Reason step by step, then give ONLY the final answer on the last line as \boxed{ANSWER}.

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Here is the step-by-step reasoning to solve the problem:

1.  **Calculate the total cost:**
    Josh bought the house for $\$80,000$ and spent $\$50,000$ on repairs.
    Total Cost = Purchase Price + Repair Cost
    Total Cost = $\$80,000 + \$50,000 = \$130,000$

2.  **Calculate the increase in the house's value:**
    The problem states that the repairs increased the value of the house by $150\%$. This percentage applies to the original value of the house (the purchase price).
    Increase in Value = $150\%$ of $\$80,000$
    Increase in Value = $1.50 \times \$80,000 = \$120,000$

3.  **Calculate the new value of the house:**
    The new value is the original value plus the increase.
    New Value = Original Value + Increase in Value
    New Value = $\$80,000 + \$120,000 = \$200,000$

4.  **Calculate the profit:**
    Profit is the difference between the new value (selling price) and the total cost.
    Profit = New Value - Total Cost
    Profit = $\$200,000 - \$130,000 = \$70,000$

\boxed{70000}