Cannot install apps on iphone 4s

I have recently started using an iPhone for the first time (after using sony ericcsons for years) and this is the first smartphoen I have bought.
I cannot seem to install apps, I can use my apple id to connect to iCloud, iTunes and anything else I need it for. I can login to the App store using the icon on my phone, when it comes to selecting an app I can view it, click on the greyed out button and it turns green saying 'install app' once I click on this the install begins and I get an alert 'Improve your Apple ID Security' and I get asked to choose 3 security questions with the options of 'not now' and 'continue'
Click 'Continue'
I get asked to enter my apple id password where I am in a permanent loop of entering my password, when I enter it it loads for a secod then asks me for the passowrd again
Click 'Not Now'
Install stops and nothing happens
I have tried clearing my cookes, signing in and signing out of the app store several times and I still get the same result. Also when in the app store and signed in, if I try to view my apple id details I get the same nedless loop again
Has anyone esle expereinced this incredibly frustrating problem? The only reason I bought this phone was for apps!

I think there is something wrong with My Apple ID, rather the phone... I just bought a new phone as I thought my old phone was having problems and couldn't run the new versions of the app. only to discover £500 later that the new phone also will not install the apps, and keeps giving me the Apple ID password request.
I have logged into my account on the internet and reset my security questions, additional email addresses etc. but cannot get out of this problem
Anyone had any success??

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