Question: Please Help 5 Suppose the interest rate on a loan is 16, business find it unprofitable to invest in machinery and equipment. However, when the
Please Help

5 Suppose the interest rate on a loan is 16, business find it unprofitable to invest in machinery and equipment. However, when the interest rate is 14 percent, 5 Billion worth of investment is protable. At 12 percent interest, a total of $10 Billion of investment is profitable. Similarity, total investment increases by $5 Billion for each successive 2 point decline in the interest rate. Describe the relevant relationship between the interest rate in the table and on a graph. As an equation. l=aB| I: 16 [(1614 29}' {54)} 29* 1 Interest Rate in Percent 16,14,12,10,8, 6,4,2,0. Graph: =16- (ZISJ'H Amount of Investment -0,5,10,15,20,25,30,35,40 = 160.4l
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
