Question 1 (25 marks Kathy lacks cash to pay for a new washing machine costing S6,000. She could buy it from Fortune Department Store on credit by making 12 monthly payments of $508 each. Instead, Kathy decides to wait and save enough money to pay cash for the washing machine. She deposits S508 at the end of each month in Dragon Bank and earns interest rate of 3%, compounded monthly. One year later when she goes back to the store, she finds that the price of the washing machine has gone up to $6,600 due to inflation. (a) Name and describe this specific type of consumer credit provided by Fortune Department Store (10 marks) (b) If Kathy postpones her purchase, what will be the amount of her deposit after one year? (5 marks) c) Advise Kathy whether postponing the purchase instead of buying on credit is a good choice. Support your answer with data. (10 marks)