Discount Rate

Pronunciation: /ˈdɪskaʊnt reɪt/

Definitions of discount rate

noun the interest rate used in discounted cash flow analysis to determine the present value of future cash flows

Example Sentences

A1 The discount rate at the store was 10% off.

A2 I used a coupon to get a lower discount rate on my purchase.

B1 The company decided to increase the discount rate to attract more customers.

B2 Investors often consider the discount rate when evaluating the potential return on an investment.

C1 Economists analyze the discount rate as part of their monetary policy research.

C2 The central bank adjusted the discount rate in response to changing economic conditions.

Examples of discount rate in a Sentence

formal The company is considering adjusting the discount rate for their bonds.

informal I heard they might lower the discount rate for the sale next week.

slang Yo, did you hear they're gonna hook us up with a lower discount rate?

figurative She always approaches life with a high discount rate, never settling for less than she deserves.

Grammatical Forms of discount rate

• plural: discount rates
• comparative: more discounted
• superlative: most discounted
• present tense: discount rate
• future tense: will discount rate
• perfect tense: has discounted rate
• continuous tense: is discounting rate
• singular: discount rate
• positive degree: discount rate
• infinitive: to discount rate
• gerund: discount rating
• participle: discounted rate

Origin and Evolution of discount rate

First Known Use: 1601 year

Language of Origin: Latin

Story behind the word: The term 'discount rate' originated from the Latin word 'discomputare' which means to deduct or subtract.

Evolution of the word: Originally used in finance to refer to the rate at which future cash flows are discounted to their present value, the term 'discount rate' has evolved to also include the rate at which financial institutions borrow from the central bank or the rate at which commercial banks charge their customers for loans.