Step 1: Analyze the Given Circle (S1):
Equation: \(x^2 + y^2 - 4x - 6y - 12 = 0\).
Center \(C_1 = (2, 3)\).
Radius \(R_1 = \sqrt{2^2 + 3^2 - (-12)} = \sqrt{4 + 9 + 12} = \sqrt{25} = 5\).
Step 2: Determine Position of New Center (\(C_2\)):
The new circle (S2) has radius \(R_2 = 3\) and touches S1 internally at \(P(-1, -1)\).
Since \(R_2<R_1\) (3<5), S2 is inside S1.
The centers \(C_1, C_2\) and the point of contact \(P\) are collinear. Since the touch is internal, \(C_2\) lies on the segment \(PC_1\).
Distance \(PC_1 = R_1 = 5\). Distance \(PC_2 = R_2 = 3\).
So \(C_2\) divides \(PC_1\) in the ratio \(3 : (5-3) = 3:2\).
Step 3: Calculate \(C_2\) Coordinates:
Using section formula for \(C_2\) dividing \(P(-1, -1)\) and \(C_1(2, 3)\) in ratio \(3:2\):
\[ x_{C2} = \frac{3(2) + 2(-1)}{3+2} = \frac{6 - 2}{5} = \frac{4}{5} \]
\[ y_{C2} = \frac{3(3) + 2(-1)}{3+2} = \frac{9 - 2}{5} = \frac{7}{5} \]
Center \(C_2 = (\frac{4}{5}, \frac{7}{5})\).
Step 4: Equation of New Circle:
\[ (x - \frac{4}{5})^2 + (y - \frac{7}{5})^2 = 3^2 \]
\[ x^2 - \frac{8}{5}x + \frac{16}{25} + y^2 - \frac{14}{5}y + \frac{49}{25} = 9 \]
Multiply by 25 to clear denominators:
\[ 25x^2 - 40x + 16 + 25y^2 - 70y + 49 = 225 \]
\[ 25x^2 + 25y^2 - 40x - 70y + 65 - 225 = 0 \]
\[ 25x^2 + 25y^2 - 40x - 70y - 160 = 0 \]
Divide by 5:
\[ 5x^2 + 5y^2 - 8x - 14y - 32 = 0 \]