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
Example Sentences
Recent Examples on the Web Trump’s discount rate was 7%; currently the rate is 3%. 
Tim Mcdonnell, Quartz, 1 Sep. 2022 Treneff said the board furthermore looks at how investment associates helped the fund grow compared to the retirement system’s actuarial discount rate, which is an estimated cost of future pension obligations. Laura Hancock, cleveland, 16 Aug. 2022 Eventually the Treasury relented, and on Jan. 20, 1920, the Fed increased the top discount rate from 4.75% to 6%, and in June, to 7%. WSJ, 21 Aug. 2022 Furthermore, this oversimplification does not take into account common actuarial factors such as discount rate assumptions, the time value of money, and retiree demographics. Erik Sherman, Forbes, 30 Dec. 2021 Falling profits and a rising discount rate are a dangerous cocktail. Shawn Tully, Fortune, 4 May 2022 Taiwan's central bank raised its benchmark discount rate by 12.5 basis points to 1.5% and lowered its economic growth outlook for the year. Medora Lee, USA TODAY, 16 June 2022 Saba's choice of discount rate was a major point of contention. Ryan Finley, Forbes, 26 May 2022 The Cowen analysts used a discount rate of 10% to compute the present value of their free cash flow forecasts for Amazon. Hersh Shefrin, Forbes, 31 Aug. 2021 See More
Tim Mcdonnell, Quartz, 1 Sep. 2022 Treneff said the board furthermore looks at how investment associates helped the fund grow compared to the retirement system’s actuarial discount rate, which is an estimated cost of future pension obligations. Laura Hancock, cleveland, 16 Aug. 2022 Eventually the Treasury relented, and on Jan. 20, 1920, the Fed increased the top discount rate from 4.75% to 6%, and in June, to 7%. WSJ, 21 Aug. 2022 Furthermore, this oversimplification does not take into account common actuarial factors such as discount rate assumptions, the time value of money, and retiree demographics. Erik Sherman, Forbes, 30 Dec. 2021 Falling profits and a rising discount rate are a dangerous cocktail. Shawn Tully, Fortune, 4 May 2022 Taiwan's central bank raised its benchmark discount rate by 12.5 basis points to 1.5% and lowered its economic growth outlook for the year. Medora Lee, USA TODAY, 16 June 2022 Saba's choice of discount rate was a major point of contention. Ryan Finley, Forbes, 26 May 2022 The Cowen analysts used a discount rate of 10% to compute the present value of their free cash flow forecasts for Amazon. Hersh Shefrin, Forbes, 31 Aug. 2021 See More Word History
First Known Use
1827, in the meaning defined at sense 1
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