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rate of interest vs discount rate

discount rate vs rate of interest

rate of interest and discount rate both are nouns.

Word NounAdjectiveVerbAdverb
rate of interest Yes No No No
discount rate Yes No No No
As nouns, discount rate is a hyponym of rate of interest; that is, discount rate is a word with a more specific, narrower meaning than rate of interest:
  • rate of interest: 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 rate of interest include bank discount, discount, base rate, prime interest rate, usury, vigorish, lombard rate.
rate of interest (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 rate of interest and discount rate

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