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 the profit from each investment option, we calculate the increase in value for both the jewelry and the electronic gadgets.

**1. Jewelry Investment:**
*   **Initial Value:** \$5,000
*   **Projected Increase:** 2.5%
*   **Calculation:** \$5,000 \times 0.025 = \$125
*   **Final Value:** \$5,125

**2. Electronic Gadgets Investment:**
*   **Initial Value:** \$8,000
*   **Projected Increase:** 1.2%
*   **Calculation:** \$8,000 \times 0.012 = \$96
*   **Final Value:** \$8,096

**3. Comparison:**
*   Profit from Jewelry: \$125
*   Profit from Electronic Gadgets: \$96

Since \$125 > \$96, the merchant should choose the jewelry to maximize profit.

\boxed{125}