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discount rate vs rate of interest

rate of interest vs discount rate

discount rate and rate of interest both are nouns.

Word NounAdjectiveVerbAdverb
discount rate Yes No No No
rate of interest Yes No No No
As nouns, rate of interest is a hypernym of discount rate; that is, rate of interest is a word with a broader meaning than discount rate:
  • discount rate: interest on an annual basis deducted in advance on a loan
  • rate of interest: the percentage of a sum of money charged for its use
Other hypernyms of discount rate include interest rate.
As nouns, rate of interest is a hypernym of discount rate; that is, rate of interest 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
  • rate of interest: the percentage of a sum of money charged for its use
Other hypernyms of discount rate include interest rate.
discount rate (noun) rate of interest (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 rate of interest

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