Interest paid by Fabina = P x R x T/100
= Rs (12500 x 12 x 3/100) = Rs 4500
Amount paid by Radha at the end of 3 years = A
= P(1 + R/100)n
A = Rs [12500(1 + 10/100)3]
= Rs [12500(100 +10/100)3]
= Rs (12500 x 110/100 x 110/100 x 110/100)
= Rs 16637.50
C.I. = A − P = Rs 16637.50 − Rs 12500 = Rs 4,137.50
The interest paid by Fabina is Rs 4,500 and by Radha is Rs 4,137.50.
Thus, Fabina pays more interest.
Rs 4500 − Rs 4137.50 = Rs 362.50
Hence, Fabina will have to pay Rs 362.50 more.