Three students checked into a hotel and paid the clerk $30 for a room ($10 each). When the hotel manager returned, he noticed that the clerk had incorrectly charged $30 instead of $25 for the room. The manager told the clerk to return $5 to the students. The clerk, knowing that the students would not be able to divide $5 evenly, decided to keep $2 and to give them only $3.

The students were very happy because they paid only $27 for the room ($9 each). However, if they paid $27 and the clerk kept $2, that adds up to $29. What happened to the other dollar?