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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To determine which purchase plan will yield a higher profit, we need to calculate the expected profit for each option based on the projected market increase.

1. Jewelry worth $5,000 with a projected increase of 2.5%:
Profit from jewelry = $5,000 * 2.5% = $5,000 * 0.025 = $125

2. Electronic gadgets worth $8,000 with a projected increase of 1.2%:
Profit from electronic gadgets = $8,000 * 1.2% = $8,000 * 0.012 = $96

Comparing the two profits:
- Profit from jewelry: $125
- Profit from electronic gadgets: $96

The merchant would make a higher profit by purchasing the jewelry.

Final answer:
\boxed{125}