If compound interest on a certain sum at 14⅔% for 3 years is Rs. 2,030, then find the simple interest on the same sum at the same rate and for the same period.

Using the fraction equivalent, the rate of 14⅔% equals 4/27, which gives a simple interest multiplier of (3 x 4)/27 = 4/9 of the principal for three years. Using the compound interest formula, the amount multiplier for three years is (31/27) cubed, which equals 29791/19683; subtracting 1 gives the compound interest multiplier of 10108/19683. Setting 10108/19683 of the principal equal to 2030 yields a principal of Rs. 3960, and multiplying this by the simple interest fraction of 4/9 gives a simple interest of Rs. 1760.

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