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You are trying to decide between two mobile phone carriers. Carrier A requires you to pay $ 2 1 5 for the phone and then

You are trying to decide between two mobile phone carriers. Carrier A requires you to pay $215 for the phone and then monthly charges of $58 for 24 months. Carrier B wants you to pay $9090 for the phone and monthly charges of $72 for 12 months. Assume you will keep replacing the phone after your contract expires. Your cost of capital is 3.6%APR, compounded monthly. Based on cost alone, which carrier should you choose?

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