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Bank Discount (Noun)

Meaning

Interest on an annual basis deducted in advance on a loan.

Classification

Nouns denoting possession and transfer of possession.

Examples

  • The lender applied a bank discount of 10% on the loan, resulting in the borrower receiving a reduced amount upfront.
  • To calculate the interest in advance, the bank used the bank discount method, deducting the interest from the loan amount before disbursing it.
  • The bank discount rate of 12% per annum was deducted from the loan, meaning the borrower would have to repay the full amount plus the remaining interest.
  • By using the bank discount formula, the borrower was able to determine the interest amount that would be deducted in advance on the loan.
  • The loan agreement stated that the lender would deduct a bank discount of 9% on an annual basis from the loan amount, resulting in a lower upfront payment for the borrower.

Synonyms

  • Discount Rate
  • Discount

Hypernyms

  • Rate Of Interest
  • Interest Rate

Hyponyms

  • Bank Rate
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