gsm8k-0015

# GSM8K Problem 16

A merchant wants to make a choice of purchase between 2 purchase plans: jewelry worth $5,000 or electronic gadgets worth $8,000. His financial advisor speculates that the jewelry market will go up 2.5% while the electronic gadgets market will rise 1.2% within the same month. If the merchant is looking to maximize profit at the end of this month by making a choice, how much profit would this be?

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

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Step 1: Calculate the profit from the jewelry purchase.
- Initial cost of jewelry = $5,000
- Expected increase in value = 2.5%
- Profit from jewelry = $5,000 * 2.5% = $5,000 * 0.025 = $125

Step 2: Calculate the profit from the electronic gadgets purchase.
- Initial cost of electronic gadgets = $8,000
- Expected increase in value = 1.2%
- Profit from electronic gadgets = $8,000 * 1.2% = $8,000 * 0.012 = $96

Step 3: Compare the profits.
- Profit from jewelry = $125
- Profit from electronic gadgets = $96
- The higher profit is from the jewelry purchase.

Step 4: Determine the maximum profit.
- Maximum profit = $125

$\boxed{125}$