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
Temu’s average discount rate comes in at just below 43 percent, and Amazon’s stands at about 18 percent.
—
Meghan Hall, Sourcing Journal, 11 Mar. 2025
But the Federal Reserve, created in 1913, raised the discount rate — the interest rate charged to member banks borrowing money, explained Marcus Witcher, an assistant professor of economic history at West Virginia University.
—Chandelis Duster, NPR, 6 Mar. 2025
Higher discount rates lower net asset values, altering the economics of secondary transactions.
—Henri Steenkamp, Forbes, 20 Feb. 2025
Lower interest rates reduce the discount rate, increasing the present value of future earnings and making stocks appear more valuable.
—Michael Khouw, CNBC, 16 Jan. 2025
See All Example Sentences for discount rate
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Meghan Hall, Sourcing Journal, 11 Mar. 2025
But the Federal Reserve, created in 1913, raised the discount rate — the interest rate charged to member banks borrowing money, explained Marcus Witcher, an assistant professor of economic history at West Virginia University.
—Chandelis Duster, NPR, 6 Mar. 2025
Higher discount rates lower net asset values, altering the economics of secondary transactions.
—Henri Steenkamp, Forbes, 20 Feb. 2025
Lower interest rates reduce the discount rate, increasing the present value of future earnings and making stocks appear more valuable.
—Michael Khouw, CNBC, 16 Jan. 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 25 Mar. 2025.
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