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interest rate vs discount rate

discount rate vs interest rate

interest rate and discount rate both are nouns.

Word NounAdjectiveVerbAdverb
interest rate Yes No No No
discount rate Yes No No No
As nouns, discount rate is a hyponym of interest rate; that is, discount rate is a word with a more specific, narrower meaning than interest rate:
  • interest rate: the percentage of a sum of money charged for its use
  • discount rate: interest on an annual basis deducted in advance on a loan
Other hyponyms of interest rate include bank discount, discount, base rate, prime interest rate, usury, vigorish, lombard rate.
interest rate (noun) discount rate (noun)
the percentage of a sum of money charged for its use interest on an annual basis deducted in advance on a loan
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 interest rate and discount rate

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