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

In January, he was appointed chairman of the Federal Reserve Bank of Atlanta, which recommends changes in the discount rate, the interest rate for lending to other banks. Marcia Heroux Pounds, Sun-Sentinel.com, "AutoNation shareholders vote against split in chair, CEO roles," 19 Apr. 2018 Future earnings are at the whim of management, growth depends on the economy and industry trends, and the discount rate is based on inflation and that fuzzy thing called risk. Andy Kessler, WSJ, "Stock Picking Is Like Time Travel," 13 Jan. 2019 Members of the other nine regional reserve banks voted to maintain the discount rate, offered directly by the Fed to healthy banks on short-term loans, at its existing level of 2.75% last month. Kate Davidson, WSJ, "Fed’s Regional Banks Split Over Whether to Raise Discount Rate in December," 15 Jan. 2019 In addition, the regulators used intellectual gymnastics to pretend investing in environmental capital isn’t investment, which allowed them to ignore guidance on discount rates. WSJ, "Debating the Social Cost of CO2 Emissions," 25 Oct. 2018 The blooms join a range of misshapen produce sold by the retailer at discount rates, part of a program to reduce waste. Fox News, "The Latest: More risk of wildfires in scorched Sweden," 3 Aug. 2018 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

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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1 May 2019

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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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