discount
| Reduction in the price of an item. For example, goods are discounted in price during a sale. Discounting is a form of competition used by companies to increase sales and market share. Discounts can also be given for buying in bulk, and this then becomes a source of economies of scale for the buying organization. |
| The term is also used to describe the equivalent present value of a sum payable or receivable in the future; for example, if the rate of interest is 5% and the sum of £105 is payable in a year's time, then its discounted present value is £100. |
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