discount rate

noun

1
: the interest on an annual basis deducted in advance on a loan
2
: the charge levied by a central bank for advances and rediscounts

Examples of discount rate in a Sentence

Recent Examples on the Web To subscribe to the Free Press at discount rates, click here. Neal Rubin, Detroit Free Press, 27 June 2024 For example, at a five percent annual discount rate, $1 today is equivalent to $1.05 next year. James H. Stock, Foreign Affairs, 16 Feb. 2021 Advocates are calling for bigger changes, including more local programs providing discount rate electricity programs for low-income families, and upgrades to building codes to require air conditioning in apartment units. Solcyré Burga, TIME, 17 June 2024 There are also specialist sites that offer contact lenses, often at discount rates. Hilary Tetenbaum, Journal Sentinel, 25 May 2024 See all Example Sentences for discount rate 

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'discount rate.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

Word History

First Known Use

1827, in the meaning defined at sense 1

Time Traveler
The first known use of discount rate was in 1827

Dictionary Entries Near discount rate

Cite this Entry

“Discount rate.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/discount%20rate. Accessed 4 Jul. 2024.

Legal Definition

discount rate

noun
1
: the interest on an annual basis deducted in advance on a loan
2
: the interest levied by the Federal Reserve for advances and rediscounts

More from Merriam-Webster on discount rate

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