A unique loan situation where an interest rate is determined, and then that percentage is removed from the loan amount, and the borrower is given the remainder of the loan. All of the interest is paid at once, at the beginning. For example, in a discount interest scenario, if a borrower is borrowing $1000 with 5% interest rate, $50 in interest is removed at the very beginning, and the borrower is able to borrow $950.
Related information about discount interest:
- Discount Interest - Financial Dictionary - The Free Dictionary
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.
- What is discount interest? definition and meaning - InvestorWords.com
Definition of discount interest: A unique loan situation where an interest rate is determined, and then that percentage is removed from the loan amount, and the ...
- Discount rate - Wikipedia, the free encyclopedia
... Rate under Merchant Account. For discount rate as a term in investment financing, see Discounted cash flow. German central bank discount interest rates ...
- FRB: The Discount Rate
The discount rate is the interest rate charged to commercial banks and other depository institutions on loans they receive from their regional Federal Reserve ...
- What Is Discount Interest?
Brief and Straightforward Guide: What Is Discount Interest?
- What is discount interest? - BusinessDictionary.com
Definition of discount interest: A financial institution will take this amount upfront from the loan.
- Understanding Discount Interest - Financial Web
Discount interest is a type of interest that is paid with some types of loans. ... Discount Interest With this type of interest, the amount of interest is going to be ...
- Interest Computation Methods - PowerPoint ... - Carleton, Inc.
Add-on/Simple/Discount Interest .... Discount interest is a method no longer in prevalent use. ... “Principal” with Discount interest is the total of payments. Thus ...