discount rate

noun

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

Examples of discount rate in a Sentence

Recent Examples on the Web

The discount rate is the sum of two factors, the risk-free interest rate, and and equity risk premium. Shawn Tully, Fortune, "Why Wall Street Is Ignoring "CAPE" Fear," 17 Jan. 2018 Members who have not yet tried Amazon Music Unlimited can get four months of the premium, on-demand service for a discount rate of 99 cents. Monica Mercuri, Billboard, "Alessia Cara, Julia Michaels & Kelsea Ballerini to Help Amazon Celebrate 'Prime Day' With NYC Performances," 6 July 2018 The break-even ages were 79 without using a discount rate and 84 using it. Robert Powell, USA TODAY, "Social Security: Will I not get spousal benefits because of state retirement pension?," 6 June 2018 At the same time, the school is looking to increase its discount rate to around 37% from 31%, to compete with peers dangling discounts of their own. Melissa Korn, WSJ, "Private Colleges Dole Out Scholarships to Boost Enrollment, but It Isn’t Working," 30 Apr. 2018 Firstly, the increase in Chinese bond yields has triggered higher interest rates and thus higher discount rates for discounting equities down. Bloomberg.com, "Fitzpatrick: China Top Risk for Emerging Markets," 24 Nov. 2017 Overall tuition discount rates for undergraduates hit a record 44.8%, up from 43.2% last year, based on survey responses from 404 private schools. Melissa Korn, WSJ, "Private Colleges Dole Out Scholarships to Boost Enrollment, but It Isn’t Working," 30 Apr. 2018 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

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.

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First Known Use of discount rate

1827, in the meaning defined at sense 1

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The first known use of discount rate was in 1827

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More Definitions for discount rate

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

More from Merriam-Webster on discount rate

Britannica.com: Encyclopedia article about discount rate

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