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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However, the total compensation of $90.2 million has a net present value of just $3.6 million, using a 10% discount rate to reflect the time-value of money, the KMA analysis determined. Jennifer Van Grove, San Diego Union-Tribune, 30 July 2025 Last year, CalPERS reported a 9.3% return on investment, which exceeded its 6.8% discount rate, or the level of returns needed for the pension fund to meet its obligations. William Melhado july 11, Sacbee.com, 11 July 2025 North Michigan Avenue remains in serious need of help, even as the section of Boul Mich near the riverwalk shows signs of renewal, with landlords snapping up commercial space at discount rates, like recently at Tribune Tower. The Editorial Board, Chicago Tribune, 2 July 2025 This shift would not only raise discount rates across the capital markets but would also directly pressure valuations—especially for long-duration equities like those dominating the NASDAQ. Conclusion: Are Markets Prepared? Bob Haber, Forbes.com, 22 July 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 8 Aug. 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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