medium · LSAT Logical Reasoning

A local charity should award a community grant only if the project will directly benefit residents of the neighborhood and the project budget does not exceed five thousand dollars.

Which one of the following situations conforms to the principle stated above?

  1. A grant is awarded to a three-thousand-dollar project because the founder of the charity is a personal friend of the project leader.
  2. The charity refuses funding to a four-thousand-dollar plan whose purpose is to bring out-of-state researchers in for a visit to the city.
  3. A grant is awarded to a project that costs six thousand dollars because it will build a new playground for local children.
  4. Any project that stays under budget and helps neighbors must be funded by the charity's grant committee.
  5. A two-thousand-dollar project that directly serves neighborhood residents is denied a grant by the committee.

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