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 find the maximum profit, we need to calculate the potential profit for each purchase plan and compare them.

**Step 1: Calculate the profit for the jewelry plan.**
The jewelry is worth $5,000 and the market is expected to go up by 2.5%.
Profit = Initial Value $\times$ Percentage Increase
Profit = $5,000 \times 0.025$
Profit = $125$

**Step 2: Calculate the profit for the electronic gadgets plan.**
The electronic gadgets are worth $8,000 and the market is expected to rise by 1.2%.
Profit = Initial Value $\times$ Percentage Increase
Profit = $8,000 \times 0.012$
Profit = $96$

**Step 3: Compare the profits to maximize gain.**
The profit from the jewelry plan is $125.
The profit from the electronic gadgets plan is $96.

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

The maximum profit would be $125.

\boxed{125}