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 charity's founder happens to be a close personal friend of the project leader here.
  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 will cost a full six thousand dollars solely because it will build a brand-new playground for local kids.
  4. Any project at all that stays comfortably under the budget cap and helps neighbors must always be funded by the charity's committee.
  5. A four-thousand-dollar project benefiting only commuters passing through, not neighborhood residents, is still awarded a grant.

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