discount rate

noun

|Updated on: 29 May 2018

Definition of discount rate

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

Recent Examples of discount rate from the Web

Write to Melissa Korn at melissa.korn@wsj.com Corrections & Amplifications Tuition-discount rates for first-time, full-time freshmen hit 49.1% last year.

— melissa korn, WSJ, "Prizes for Everyone: How Colleges Use Scholarships to Lure Students," 17 Apr. 2018
The computer system assigned a default discount rate to every Nike customer, typically between three and seven percent, depending on the customer's size and standing, according to federal prosecutors.

— maxine bernstein, OregonLive.com, "Fired Nike executive pleads guilty to wire fraud," 1 May 2018
The US Postal Service has long maintained a special discount rate for periodicals to facilitate the dissemination of journalism and the viability of journalism business models.

— matthew yglesias, Vox, "The case against Facebook," 9 Apr. 2018
Those who revel in hot weather should hightail it to Scottsdale, where many properties offer discounted rates for the sizzling summer months.

— stephanie granada, Sunset, "10 July 4th Weekend Trips You Can’t Miss," 22 Jan. 2018
Note: Schools often have multiple discount rates for different students; these calculations are simplified for clarity.

— melissa korn, WSJ, "Prizes for Everyone: How Colleges Use Scholarships to Lure Students," 17 Apr. 2018
Higher bond yields equate to a higher discount rate, making future earnings worth less today and reducing the valuation.

— james mackintosh, WSJ, "After Nine Years, How Long Can This Bull Live?," 8 Mar. 2018
Equities are priced as the discounted value of future profits; the lower the discount rate, the higher the price.

— The Economist, "ButtonwoodAutomation will drive interest rates higher, a new report concludes," 3 Mar. 2018
And by the 2016-17 school year, the 411 private nonprofit schools that the National Association of College and University Business Officers surveyed were reporting an average discount rate of 49 percent for first-time, full-time students.

— ron lieber, New York Times, "Why It’s So Hard to Calculate What You’ll Pay for College," 19 Jan. 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'discount rate.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

First Known Use of discount rate

1827

in the meaning defined at sense 1

See Words from the same year

NEW! Time Traveler

Law Dictionary

discount rate

noun

legal Definition of discount rate

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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Britannica.com: Encyclopedia article about discount rate

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discount rate

Definition of discount rate

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First Known Use of discount rate

Law Dictionary

discount rate

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