Calculate the loan discount amount (simple interest)
Bob borrows $5000 to pay off some bills and catch up on car payments. The bank offers him a discount loan with an advertised rate of 7.5% (simple interest) for ...
The discount rate | Money, banking and central banks | Finance & Capital Markets | Khan Academy
The discount rate and window. Lender of last resort. Created by Sal Khan. Watch the next lesson: ...
Discount Loans Definition
Definition of discount loan: A loan on which the interest and financing charges are deducted from the face amount when the loan is issued.
Definition of discount loan: Short-term lending arrangement in which interest amount for the entire loan period (plus other charges, if any) is deducted from the principal at the time a loan is disbursed. The borrower pays off ...
A discount loan is a loan that does not require the payment of interest or any other charges; rather, a discount loan deducts the interest and/or other charges from the face amount of the loan when it is given out. That way, the person taking out the discount loan receives less.
The discount rate is the interest rate charged to commercial banks and other depository institutions on loans they receive from their regional Federal Reserve Bank's lending facility--the discount window.
Discount rate is the interest rate charged to commercial banks and other depository institutions for loans received from the Federal Reserve's discount window. more Federal Reserve Credit
Such loans are granted by the regulatory agency for an ultra-short term period of 24-hours or less, and the applicable rate of interest charged on these loans is a standard discount rate.