Answer: Radha pays $387.50 more interest than Fabina
Step-by-step explanation:
Fabina
Simple Interest: I = P × r × t
= 12500 × 0.10 × 3
= $3750.00
Radha
[tex]\text{Compound Interest:}\ A = P(1+r)^t\\.\qquad \qquad \qquad \qquad \qquad =12500(1+0.10)^3\\.\qquad \qquad \qquad \qquad \qquad =12500(1.10)^3\\.\qquad \qquad \qquad \qquad \qquad =16637.50[/tex]
16637.50 - 12500 = $4137.50
4137.50 - 3750.00 = $387.50
