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 To subscribe to the Free Press at discount rates, click here. Neal Rubin, Detroit Free Press, 11 Jan. 2024 One factor obviously contributing to higher SC-GHG values is the EPA’s reduction of the discount rate from 3 percent to 2 percent (albeit now with approval from the Office of Management and Budget). Marlo Lewis, National Review, 29 Dec. 2023 The central bank kept its benchmark discount rate at 1.875%, as expected in a poll of analysts by The Wall Street Journal. Ben Otto, WSJ, 14 Dec. 2023 Sephora has lower buyer discount rates than Target and Starbucks, but clocked in an $80.83 resale value, securing the No. 3 spot in WalletHub’s rankings. 4. Noah Goldberg, Los Angeles Times, 14 Dec. 2023 Ten years after the first observation, 40 percent of firms have an unchanged discount rate. Quora, Forbes, 30 Nov. 2023 Still, Salesforce’s data showed discount rates rose to 30% in the U.S. on Black Friday, enticing customers to buy. Haleluya Hadero, Fortune, 28 Nov. 2023 Still, Salesforce's data showed discount rates rose to 30% in the U.S. on Black Friday, enticing customers to buy. CBS News, 27 Nov. 2023 However, rising interest rates have pushed up the discount rate used to value future assets, thus devaluing Hipgnosis’s portfolio. Ryan Hogg, Fortune, 1 Oct. 2023 See More

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 20 Feb. 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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