Logic & Reasoning Question

The Missing Money Paradox

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This logic question tests your ability to think clearly and avoid common mathematical traps. Read the scenario carefully and answer the questions below.

Scenario:

Two people each contribute KSh 50,000, making a total of KSh 100,000. A laptop is bought for KSh 97,000. The seller returns KSh 2,000 to each person and keeps KSh 1,000.

Each person now paid KSh 49,000. When you add 49,000 × 2 = KSh 98,000. Adding the KSh 1,000 kept by the seller gives KSh 99,000.

Question: Where did the missing KSh 1,000 go?

Questions

1. Why does it appear that KSh 1,000 is missing in this calculation?
2. What is the main logical mistake made when adding the amounts?
3. Which of the following best explains the error?

A. Wrong subtraction
B. Adding unrelated values
C. Incorrect division
D. Rounding off figures
4. If each person received KSh 2,000 back, how much did each person actually pay?
5. What skill does this question mainly test?

A. Geometry
B. Algebra
C. Logical reasoning
D. Statistics
Note:
The full explanation and correct solution to this logic puzzle is available in the premium answers section.
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