1. 2.16 Claudia has an old phone with zero resale value but she is sure it will last for another year. On her cur rent contract she pays €30 per month for a fixed number of call minutes, data, and texts. If she opts for a new contract, she will get a new handset and pay €28 per month for the same services as before.

The up-front charge for the phone is €360. If the annual interest rate is 6%, and Claudia is only inter ested in saving money, should she sign the new con tract now or wait another year? What if the interest rate is 12%? M