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
For the most part, EV purchases do not generate the same discount rates as leases since the dealership would no longer be able to claim the full credit regardless of vehicle price, assembly location, battery sourcing, or lessee income.
—
Hughey Newsome, Forbes.com, 10 Sep. 2025
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
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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Hughey Newsome, Forbes.com, 10 Sep. 2025
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
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 13 Sep. 2025.
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