Radio-Rentals.com offers the Apple iphone 5S smart phone for rent at $**12.95** per week paid in **advance** on a **2** year contract. After renting the phone, you must return it to Radio-Rentals.

Kogan.com offers the Apple iphone 5S smart phone for sale at $**699**. You estimate that the phone will last for **3** years before it will break and be worthless.

Currently, the effective annual interest rate is **11.351**%, the effective monthly interest rate **0.9**% and the effective weekly interest rate is **0.207**%. Assume that there are exactly **52** weeks per year and **12** months per year.

Find the equivalent annual cost of renting the phone and also buying the phone. The answers below are listed in the same order.