Discount rate is a noun and refers to the rate at which future cash flows are discounted to their present value. For instance, a discount rate of 10% would mean that a dollar received in one year is worth only 90 cents today.
Discount rate is an essential concept in finance and investment. It is used for capital budgeting, valuation of bonds and stocks, and other financial decisions. The discount rate has been used for centuries, with the first recorded use in 16th-century Italy.