arithmetical discount

noun

: the interest discounted in advance on a note and computed on the principal of the note

the arithmetical discount on a $1000 note for one year at 5% is $47.62

called also true discount

compare bank discount

The Ultimate Dictionary Awaits

Expand your vocabulary and dive deeper into language with Merriam-Webster Unabridged.

1. Expanded definitions
2. Detailed etymologies
3. Advanced search tools
4. All ad-free

Discover what makes Merriam-Webster Unabridged the essential choice for true word lovers.

Start Your Free Trial Now