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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We are given two purchase options:

- **Jewelry**: Worth **$5,000**, expected to increase by **2.5%** in value.
- **Electronic gadgets**: Worth **$8,000**, expected to increase by **1.2%** in value.

The merchant wants to **maximize profit**, so we compute the **profit** (i.e., the increase in value) for each option and compare.

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### Step 1: Compute profit from jewelry

Profit = 2.5% of $5,000  
= $ 5000 \times \frac{2.5}{100} $  
= $ 5000 \times 0.025 $  
= **$125**

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### Step 2: Compute profit from electronic gadgets

Profit = 1.2% of $8,000  
= $ 8000 \times \frac{1.2}{100} $  
= $ 8000 \times 0.012 $  
= **$96**

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### Step 3: Choose the better option

- Jewelry profit = **$125**  
- Gadgets profit = **$96**

So, jewelry yields higher profit.

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### Final Answer:

\boxed{125}