Nginx location testing is not redirecting to the correct page

Hello,

I am completely new to nginx, therefore please be kind. I have my domain registered and I am trying to get the following to happen.

When a user enters example.com I want them to get a 404. When they enter in example.com/test I want them to get my index.html. This is an unusual use case, but its what I would like.

I have set-up a site under

/var/www/example/public_html // /with index.html as well /var/www/example/public_html/test //with index.html as well

The config is located under:

/etc/nginx/sites-available/example

The symbolic link is working and is: /etc/nginx/sites-enabled/example

Heres my config for example:

server
{
        listen 80;
        server_name example;

        #not sure if i need the below to lines?
	root /var/www/example/public_html;
        index index.html index.htm;

        location /
        {
                return 404;
        }

        location /test/
        {
                root /var/www/example/public_html/test;
                index index.html index.htm;
        }
}

When I enter example.com, I do get my 404. But when I go to example.com/test I just get a 404 as well, when I was hoping the /test/ would be matching and change the root so the index would show.

If I get rid of the two location checks, then typing www.example.com goes to my index.html page as expected.

Any help would be appreciated.

Thank you.