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
Rising yields increase the discount rate used in valuation models, reducing the present value of all future cash flows, which in turn could lead to lower stock valuations generally.
—
Michael Khouw, CNBC, 22 May 2025
The discount rate is typically adjusted based on how quickly the payment is made.
—Allbusiness, Forbes.com, 21 May 2025
Note during the 1955-1964 period, the discount rate was above the federal funds rate.
—John S. Tobey, Forbes.com, 11 May 2025
Colleges with shrinking applicant pools or rising tuition discount rates — now averaging 56% at private colleges, according to the National Association of College and University Business Officers — face pressure to admit more full-pay
students.
—Gerald Bradshaw, Chicago Tribune, 1 May 2025
See All Example Sentences for discount rate
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Michael Khouw, CNBC, 22 May 2025
The discount rate is typically adjusted based on how quickly the payment is made.
—Allbusiness, Forbes.com, 21 May 2025
Note during the 1955-1964 period, the discount rate was above the federal funds rate.
—John S. Tobey, Forbes.com, 11 May 2025
Colleges with shrinking applicant pools or rising tuition discount rates — now averaging 56% at private colleges, according to the National Association of College and University Business Officers — face pressure to admit more full-pay
students.
—Gerald Bradshaw, Chicago Tribune, 1 May 2025
See All Example Sentences for discount rate
Cite this Entry
“Discount rate.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/discount%20rate. Accessed 3 Jun. 2025.
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