3. Let's suppose there are two pieces of paper for sale. If you purchase the red paper, you can turn it in for $14,000 after waiting 4 years. If you purchase the blue paper, you can tear it in half and turn one half in for $7,000 after two years. The other half can be turned in for $5,000 after waiting two more years (four years total). The red paper and the blue paper each cost $8,000, and you only have $8,000 to spend. Interest rates in the economy are 15% (.e. use 15% for discounting). Which do you purchase? Use the following chart for assistance: Red Payout Blue Payout Time Jan. 2021 Jan. 2022 Jan. 2023 Jan. 2024 $7,000 $14,000 $5,000