discount rate


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 Most colleges address enrollment and revenue declines by simply increasing the discount rate to enroll more students. Robert Massa, The Conversation, "Here’s why colleges are being forced to close their doors - and what they can do to stay open," 7 Nov. 2019 To weigh both resident and local business concerns, town staff spoke with business owners and managers and also reminded them of a town program that offers businesses discounted rates at Memorial and Isham garages. Emily Brindley,, "Town council approves partial parking ban on residential streets near West Hartford Center and Blue Back Square," 8 Oct. 2019 For example, if a plan expects to have to make a $10,000 payment in 20 years and uses a 3 percent discount rate, today’s obligation for that future payment is $5,537. Allan Sloan, Washington Post, "Trump is demanding low or even zero interest rates. But there is a real downside.," 12 Sep. 2019 For example, perhaps the biggest debate in environmental economics in recent years has concerned discount rates. The Economist, "Martin Weitzman died on August 27th," 5 Sep. 2019 Doctors online expressed shock and dismay after realizing that patients are using Groupon deals to access medical services, such as chest CT scans and mammograms, at discount rates, according to a report by Kaiser Health News. Beth Mole, Ars Technica, "Doctors aghast at Groupon deals for medical care," 6 Sep. 2019 Also, the lower the discount rate, the more investors value a stock’s future cash flows, bidding up valuations. Allison Schrager, Quartz, "Why low interest rates are good for Millennials and bad for Boomers," 15 Aug. 2019 This is when airline bereavement fares come into play—discounted rates for grieving passengers who've had a death (or have an imminent death) of a family member. Jessica Puckett, Condé Nast Traveler, "How to Get a Bereavement Fare From an Airline," 7 Aug. 2019 Beginning July 26, Brightline, which is being re-branded as Virgin Trains USA, will offer discounted rates for fans in Broward and Palm Beach. Wells Dusenbury,, "Marlins partner with Brightline on discounted rates for Palm Beach, Broward fans," 18 July 2019

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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Time Traveler for discount rate

Time Traveler

The first known use of discount rate was in 1827

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Statistics for discount rate

Last Updated

13 Nov 2019

Cite this Entry

“Discount rate.” The Dictionary, Merriam-Webster Inc., Accessed 10 December 2019.

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More Definitions for discount rate

discount rate


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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to state or do over again or repeatedly

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