In its broadest sense, the term discount refers to the reduction or reduction of an amount, while the word presents stricter references according to the context in which it is used.
At the behest of the economy, the discount is that operation that is specified in the banks and that consists of the acquisition by them of promissory notes or bills of exchange not due for which they will receive an interest as a consequence of advancing the amount. The nominal value of the document or bill of exchange will be discounted to the equivalent of the interest, registering the operation on paper between the date of issue and the date of maturity.
The financial discount admits two types, the legal or rational and the commercial one. In the first case, the discount will be calculated by applying the interest rate and the corresponding simple interest laws; and in the commercial the discount will be calculated on the nominal value of the document.
Both are calculated using the following formula: D = N. d. t. representing the following: D (discount made), N (nominal value of the document), i (discount interest rate), d (discount rate applied), t (time).
On the other hand, in this same context, the term discount is also used to refer to the amount that is reduced from the amount of the securities to reward the aforementioned operation.
And in the other area in which the term has a very popular use is in Marketing, since there is called a discount to the reduction of a percentage on the price of a good or a service.
Generally, the motivation for this type of practice turns out to be to offer those products that are in surplus or that have a very low demand at a much lower price than advertised and expected, with the clear objective of promoting demand or reducing costs. They can lead to the same in terms of storage or inventory.
And finally, In the field of sport, especially in football, the discount or injury time turns out to be the time that the referee of the match being played will add once the regulation time of the same has ended, with the aim of restoring the time that has been lost. for the interruptions that occurred during its duration.
