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Friday, August 1, 2014   
 
Household Math™: Punch Me for Gas
by Scott Bilker
Scott Bilker
Scott Bilker is the author of the best-selling books, Talk Your Way Out of Credit Card Debt, Credit Card and Debt Management, and How to be more Credit Card and Debt Smart. He's also the founder of DebtSmart.com. More about and DebtSmart can be found in the online media kit.
 
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Test your knowledge by trying to solve this DebtSmart, Household Math™ problem! After you complete the problem, you’ll get the solution and explanation.
 

1. Hello!

I enjoy the debt smart newsletter very much. I particularly like the trivia and have often thought about sending you the following, but just never get around to it. The best part is it is real! Here goes...

Out of the three gas stations in as many blocks, the middle price ranged gas station offers a punch card. For every two gallons of gas purchased, you earn one punch on the card. When you reach 100 punches, you are entitled to your choice from a variety of free goods from their store including a free large one topping pizza, taco meal deal, or $5 worth of gas. The pizza is regularly $10; the taco meal is $7, but you like the pizza because you read the DebtSmart® Newsletter.

At this particular station, the gas averages $.05 more/ gallon than the business across the street.

Also, as a Thursday only special this business offers *two* card punches for *each* gallon of gas.

Finally, this chain offers a rebate gas card that earns you 3% cash back when using your card for purchases at this particular chain. You, of course, pay off the balance in full each month so it is interest free.

QUESTION “At what point does it pay to buy gas here as opposed to the cheaper competitor, or is the lure of free pizza just that?”

I realize there are many variables to this puzzle, but that is what makes it interesting. Hope you can tailor it to fit your puzzles online as needed.

Thanks again for the newsletter!

--Submitted by DebtSmart® reader Tammi Chaney, who always buys gas on Thursday...with the gas card. ;)

It’s always better as long as you eat the pizza and get gas on Thursdays like Tammi is doing.
If the price of gas skyrockets to more than $5 per gallon then it’s best to forget the pizza and save the 5 cents.
The point where it’s better is after exactly 50.35 gallons of gas.
Tammi is making a mistake getting gas at that station. She’d be better off going to the place where gas is 5 cents cheaper per gallon.
Both gas stations are equal.
There is no way to figure this out.
I don't know!





 
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