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 step by step, we will calculate the simple interest for Fabina and the compound interest for Radha, and then compare the two amounts.

### Step 1: Calculate Simple Interest for Fabina
The formula for Simple Interest (SI) is:
\[ \text{SI} = \frac{P \times R \times T}{100} \]
Where:
...