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What is "discount rate"

Longman Dictionary of Contemporary English
discount rate
noun
EXAMPLES FROM CORPUS
▪ Capital costs are expressed as annual equivalents assuming a seven year lifespan for the equipment and a 5% discount rate.
▪ However, we will disregard this refinement for the remainder of the chapter and assume that the discount rate is constant.
▪ Interest rates would then rise as the central bank increased its discount rate to discourage borrowing and the demands for legal tender.
▪ The central bank is expected to cut its discount rate this quarter, traders said.
▪ The central bank trimmed the discount rate to a record low 0. 5 percent in September.
▪ The formal agreement between the two parties is based purely upon an agreed discount rate.
Wiktionary
discount rate

n. 1 (context finance English) An interest rate that a central bank charges depository institutions that borrow reserves from it. 2 (context finance English) The interest rate used to discount future cashflows of a financial instrument; the annual interest rate used to decrease the amounts of future cashflows to yield their present value.

WordNet
discount rate

  1. n. the rate of interest set by the Federal Reserve that member banks are charged when they borrow money through the Federal Reserve System

  2. interest on an annual basis deducted in advance on a loan [syn: discount, bank discount]

Wikipedia
Discount rate

Discount rate may refer to:

  • An interest rate (the term "discount" does not refer to the common meaning of the word, but to the meaning in computations of present value)
    • The central bank's discount window interest rate
    • The annual effective discount rate, an alternative measure of interest rates to the standard Annual Percentage Rate
  • in investment financing, discounted cash flow
  • theoretical or observed rates at which people discount future payoffs
    • in environmental economics, and more generally in assessing the general welfare impacts of government policies, social discount rate (the basic mathematics is the same as discounted cash flow, but the cash value of human lives etc. can only be crudely estimated)
  • Fees charged for accepting payments other than in banknotes and coins:
    • bankers' acceptance rates for accepting bankers' acceptances. If commission is included as well, this is known as the all-in rate
    • Discount Rate under Merchant Account, the fees charged to merchants for accepting credit cards

Usage examples of "discount rate".

These calculations assume a 12-percent discount rate on the winner’.

Just so the Fed Chairman leaves the discount rate alone, but I expect he will.

Iraq supplies all of Jordan's oil, about 100,000 barrels per day, half of it for free and the other half at a significant discount rate (which is paid directly to Baghdad, rather than into the U.

After recovering from the initial bout of panic and fear that followed ejaculation, he arranged a discount rate with her to stay the night.

They finally settled on this huge house in the hills of Carmel, which they'd only been able to afford because they'd bought it in this completely wretched state, and this construction company Andy does a lot of work for fixed it up at this big discount rate.

Lloyd MacKenzie, our de facto consul, serves us at a discount rate.