PUSHPA RETURNED A SUM OF rS.4800.00 AGAINST SOME LOAN AT AN INTEREST OF 4% P.A. FOR A PERIOD OF 5 YEARS. FIND THE SUM BORROWED BY HER.

Since nothing is given about the type of interest, let us assume that it is a simple interest.

The sum borrowed is equivalent to the principal (P).

The sum returned is equivalent to the amount (A = 4800).

The formula for simple interest is , where R = 4% is the interest rate and T =  5 years is the time period

Interest = Amount - Principal.

Thus,

Thus, sum borrowed by Pushpa is Rs.4000

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