Discount rate - Wikipedia, the free encyclopedia

Discount rate - Wikipedia, the free encyclopedia: "From Wikipedia, the free encyclopedia • Learn more about citing Wikipedia • Jump to: navigation, search For the interest rate charged to banks for borrowing short term funds directly from a central bank, see discount window. The discount rate is a financial concept based on the future cash flow in lieu of the present value of the cash flow. The divisor in the discount rate formula is the resultant future value, including income. The concept of a discount rate differs from that of an interest rate, most notably in that the divisor in the interest rate formula is the original investment."