 Hello students, let's work out the following problem. It says a bill of rupees 1000 drawn on May 7, 2003 for six months was discounted on August 29, 2003 for a cash payment of rupees 988. Find the rate of interest charged by the bank. So let's now move on to the solution we are given that the date of drawing the bill is May 7, 2003 and the term of the bill is six months therefore due date of the bill is November 10, 2003 Since the date of drawing the bill is May 7, 2003 and the term of bill is six months. So from May 7, 2003 to November 7, 2003 we have the term of bill and three days of grace period. Now the date of discounting is August 29 therefore number of days from August 29 to November 10 two days of August 30 days of September, 31 days of October and 10 days of November and this is equal to 73. Now the bill is of rupees 1000. So S is equal to 1000 and T is 73 upon 365 is equal to 1 by 5. Now let R be the rate of interest per NM. So the bankers discount is given by the formula S into R into T. Now S is 1000, R is the rate of interest, T is 1 by 5. So this is equal to 200 R. Now we are given that the bill was discounted for a cash payment of rupees 988. Therefore bankers discount is 1000 minus 988 that is rupees 12. Now we have 2 R 200 R is equal to rupees 12. So this implies R is equal to 12 upon 200 which is again equal to 3 by 50. Now we have to convert into percentage. So therefore the rate of interest charged by the bank is equal to 3 by 15 into 100 and this is equal to 6% Hence the answer is 6%. So this completes the question and the session. Bye for now. Take care. Have a good day.