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
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The fee is over multiple years, resulting in a net present value of between $400 million and $450 million, depending on the discount rate applied. Kurt Badenhausen, Sportico.com, 8 July 2025 Other savings would come from cost-cutting measures for the installation of electric vehicle charging infrastructure, renewable energy credits and the low-income discount rates offered by utilities. John Moritz, Hartford Courant, 4 June 2025 Local strawberry farmer Neil Ngata told the water authority board last week that the discount rate is keeping many farms in business. David Garrick, San Diego Union-Tribune, 28 May 2025 Most courses listed also offer discount rates for seniors. Langston Wertz Jr, Charlotte Observer, 27 May 2025 See All Example Sentences for discount rate

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

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Cite this Entry

“Discount rate.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/discount%20rate. Accessed 15 Jul. 2025.

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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