Discount
a deduction made in the payment of a bill or settlement of an account for ready or prompt payment; a sum deducted at a certain rate per cent. from the credit price of any article in consideration of prompt payment. The term discount is applied both to the amount deducted and the rate per cent. at which the deduction is calculated or allowed. Discount in banking is a charge made at a certain rate per cent. for the interest of money advanced on a bill or other document due at some future time.
This charge the discounter deducts from the amount of the bill, handing over the balance to the borrower; a deduction from the present value of a security, the payment ent of which is postponed. The lated by, the market value of money. rate of discount depends on, and is regu-