Three men rent a hotel room. Each pays $10 for a total of $30 spent on the room. Shortly afterwards the desk clerk realized that he had overcharged the three men by $5. He calls the Bell Boy over, gives him the $5.00 and explains to him that he had overcharged the three men and asked him to go up and give them the $5.

The men decide to each take $1 back and give a $2 tip to the Bell Boy, that means they only paid $9 each for the room, which is a total of $27; plus the $2 for the tip for a total of $29. But they gave the desk clerk $30!

Where did the extra $1 go

There is no extra $1, $27 + $2 is faulty logic.

$3 x $9 does equal $27, but the $2 tip is included in that $27.

They paid $25 for the hotel room, a $2 tip and each got back $1. ($25 + $2 +$3 = $30)

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