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discount rate vs interest rate

interest rate vs discount rate

discount rate and interest rate both are nouns.

Word NounAdjectiveVerbAdverb
discount rate Yes No No No
interest rate Yes No No No
As nouns, interest rate is a hypernym of discount rate; that is, interest rate is a word with a broader meaning than discount rate:
  • discount rate: interest on an annual basis deducted in advance on a loan
  • interest rate: the percentage of a sum of money charged for its use
Other hypernyms of discount rate include rate of interest.
As nouns, interest rate is a hypernym of discount rate; that is, interest rate is a word with a broader meaning than discount rate:
  • discount rate: the rate of interest set by the Federal Reserve that member banks are charged when they borrow money through the Federal Reserve System
  • interest rate: the percentage of a sum of money charged for its use
Other hypernyms of discount rate include rate of interest.
discount rate (noun) interest rate (noun)
interest on an annual basis deducted in advance on a loan the percentage of a sum of money charged for its use
the rate of interest set by the Federal Reserve that member banks are charged when they borrow money through the Federal Reserve System
Difference between discount rate and interest rate

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