Fabina borrows Rs 12,500 at 12% per annum for 3 years at simple interest and Radha borrows the same amount for the same time period at 10% per annum, compounded annually. Who pays more interest and by how much?

Explanation

To solve the problem, we will calculate the interest paid by both Fabina and Radha, and then compare the two amounts to determine who pays more interest and by how much.

### Step 1: Calculate Simple Interest for Fabina
- **Principal (P)** = Rs 12,500
- **Rate (R)** = 12% per annum
- **Time (T)** = 3 years

The formula for Simple Interest (SI) is:
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