Question: First, note that we will use the equation rt = 3% + IPt + MRPt. We have the data needed to find the IPs: IP5

First, note that we will use the equation rt = 3% + IPt + MRPt. We have the data needed to find the IPs: IP5 = (8%+5%+4%+4%+4%)/5= 5%. IP2 = (8%+5%)/2 = 6.5%. Now we can substitute into the equation: r2 = 3% + 6.5% + MRP2 = 10%. r5 = 3% + 5% + MRP5 = 10%. Now we can solve for the MRPs, and find the difference: MRP5 = 10% - 8% = 2%. MRP2 = 10% - 9.5% = 0.5%. Difference = (2% - 0.5%) = 1.5%

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