Fabina borrows Rs. 12,500 at 12% per annum for 3 years. Find the simple interest and compare it to the compound interest.

Fabina:
SI = 12500 × 3 × 12/100 = 4500
Simple interest, SI = Rs 4500

Radha (assuming this is a comparison problem, and Radha borrows the same amount at the same rate compounded annually):
A = P(1 + r/100)^n = 12500(1 + 10/100)^3 = 12500(1.331) = 16637.5
Amount = Rs 16637.50
CI = A - P = Rs 16637.50 - Rs 12500 = Rs 4137.50

Fabina pays more interest by Rs 4500 - Rs 4137.50 = Rs 362.50