Printer Friendly
Dictionary, Encyclopedia and Thesaurus - The Free Dictionary
3,898,483,858 visitors served.
forum Join the Word of the Day Mailing List For webmasters
?
Dictionary/
thesaurus
Medical
dictionary
Legal
dictionary
Financial
dictionary
Acronyms
 
Idioms
Encyclopedia
Wikipedia
encyclopedia
?

Discount Interest

    0.01 sec.
Discount Interest
Interest at a beginning of the loan. For example if you take out a one-year loan of $100 at a discount interest rate of 10%, you would receive $90 at the outset.

Discount Interest
1. A situation where all the interest on a loan is paid at once. That is, the interest is deducted from the amount the borrower receives at the beginning of the loan. For example, if a bank makes a loan of $20,000 at a simple interest rate (that is, a non-compounding rate) of 5%, the bank simply does not give the borrower $1,000 (or 5% of $20,000). The borrower effectively borrows $19,000 and repays it with no interest. Discount interest is very rare in retail banking.

2. See: Discount rate.


Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content.
?Page tools
Printer friendly
Cite / link
Feedback
Add definition
Mentioned in?  References in periodicals archive?   Financial browser?   Full browser?
 
Pakistan's central bank Saturday lowered its discount interest rate by one percentage point after acknowledging that the country's economy was showing resilience.
Pakistan's central bank Saturday lowered its discount interest rate by one percentage point after acknowledging that the country's economy was showing resilience.
The cuts came a day after Kuwait cut its key discount interest rate by 125 basic points, and the UAE reduced rates 50 basic points.
 
 
 
Financial Dictionary
?

Terms of Use | Privacy policy | Feedback | Advertise with Us | Copyright © 2012 Farlex, Inc.
Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.