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 that case, the district Feds could raise their discount rates, discouraging local banks’ borrowing.
—
Edward Lotterman, Twin Cities, 31 Aug. 2025
Rate cuts also reduce the discount rate used in valuing future cash flows, which helps companies with steady but slower-growing earnings streams.
—Josh Brown,sean Russo, CNBC, 25 Aug. 2025
At private institutions, where discount rates for domestic students often exceed 50%, international full-pay students are the linchpin keeping the financial model afloat.
—Scott White, Forbes.com, 15 Aug. 2025
However, the total compensation of $90.2 million has a net present value of just $3.6 million, using a 10% discount rate to reflect the time-value of money, the KMA analysis determined.
—Jennifer Van Grove, San Diego Union-Tribune, 30 July 2025
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Edward Lotterman, Twin Cities, 31 Aug. 2025
Rate cuts also reduce the discount rate used in valuing future cash flows, which helps companies with steady but slower-growing earnings streams.
—Josh Brown,sean Russo, CNBC, 25 Aug. 2025
At private institutions, where discount rates for domestic students often exceed 50%, international full-pay students are the linchpin keeping the financial model afloat.
—Scott White, Forbes.com, 15 Aug. 2025
However, the total compensation of $90.2 million has a net present value of just $3.6 million, using a 10% discount rate to reflect the time-value of money, the KMA analysis determined.
—Jennifer Van Grove, San Diego Union-Tribune, 30 July 2025
See All Example Sentences for discount rate
Cite this Entry
“Discount rate.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/discount%20rate. Accessed 10 Sep. 2025.
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