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 In 1979, the Bank of England’s discount rate was raised to an all-time high of 17%, which was followed in 1981–while the U.K. was still in recession–by a severely deflationary budget. Tim Lankester, Fortune, 16 May 2024 The agency also applies discount rates that place less value on the future benefits of controlling pollution than the present ones, according to the attorneys, who say these practices discriminate against children. Alex Wigglesworth, Los Angeles Times, 15 May 2024 This is a result of a decrease in discount rates partially offset by an increase in equity markets, according to the report. Sheryl Estrada, Fortune, 9 Apr. 2024 To subscribe to the Free Press at discount rates, click here. Detroit Free Press, 3 Apr. 2024 Factoring in a 10% discount rate, Uber's current enterprise value would be estimated at $129 billion, 29.50% lower than its current trading price. Gurufocus, Forbes, 1 Mar. 2024 To subscribe to the Free Press at discount rates and read lots of short stories plus some long ones, click here. Detroit Free Press, 10 Mar. 2024 Applying a discount rate of 10%, Uber's current enterprise value would be estimated at approximately $173 billion, slightly below its current enterprise value of $183 billion. Gurufocus, Forbes, 1 Mar. 2024 Investments in Nigeria were considered risky because of political instability and corruption, so the standard discount rate at the time was more than 10 percent; the Berkeley report used 2.6 percent. Jesse Barron, New York Times, 9 Feb. 2024

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 1 Jun. 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

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