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
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President Richard Nixon’s phone transcripts include a December 1971 exchange with then Fed Chairman Arthur Burns in which Nixon praises him for lowering the discount rate, according to an article in the Journal of Economic Perspectives. Paul Davidson, USA Today, 19 Apr. 2025 For the majority of America’s 2,000-some private, four-year colleges, any increase in tuition prices without a similar increase to discount rates could scare away potential students. Emma Whitford, Forbes.com, 11 Apr. 2025 Both utilities also offer payment matching programs and discount rates for customers who qualify for CEAP or other assistance programs. Laura Tillman, Hartford Courant, 3 Apr. 2025 Life Music fans a 15% special discount rate, organizers told CharlotteFive. Chyna Blackmon, Charlotte Observer, 28 Mar. 2025 See All Example Sentences for discount rate

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

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Cite this Entry

“Discount rate.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/discount%20rate. Accessed 23 Apr. 2025.

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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