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Maths in a minute: The missing pound

Here's a well-known conundrum: suppose I need to buy a book from a shop that costs £7. I haven't got any money, so I borrow £5 from my brother and £5 from my sister. I buy the book and get £3 change. I give £1 back to each my brother and sister and I keep the remaining £1. I now owe each of them £4 and I have £1, giving £9 in total. But I borrowed £10. Where's the missing pound?

The answer is that the £10 are a red herring. There's no reason why the money I owe after the whole transaction and the money I still have should add up to £10. Rather, the money I owe minus the change I got should come to the price of the book, that is £7. Giving a pound back to each my brother and sister just re-distributes the amounts. The money I still owe is reduced to £8 and the money I still have to £1. Rather than having £10-£3=£7, we now have £8-£1=£7. Mystery solved!

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