1. **State the problem:** We are given a RM5,000 note with 8% interest for six months, discounted at 6.5%, and the discount amount is RM18.78. We need to find the term of discount of the note. 2. **Identify known values:** - Principal, $P = 5000$ - Interest rate on note, $r = 8\% = 0.08$ per annum - Term of note, $T = 6$ months = $0.5$ years - Bank discount rate, $d = 6.5\% = 0.065$ per annum - Discount amount, $D = 18.78$ 3. **Calculate the maturity value of the note:** The maturity value $M$ is the principal plus interest for 6 months: $$M = P + P \times r \times T = 5000 + 5000 \times 0.08 \times 0.5 = 5000 + 200 = 5200$$ 4. **Use the bank discount formula:** The discount amount $D$ is given by: $$D = M \times d \times t$$ where $t$ is the term of discount in years. 5. **Solve for $t$:** $$t = \frac{D}{M \times d} = \frac{18.78}{5200 \times 0.065} = \frac{18.78}{338} \approx 0.05556 \text{ years}$$ 6. **Convert $t$ to days:** $$t = 0.05556 \times 360 = 20 \text{ days}$$ **Final answer:** The term of discount of the note is **20 days**.