Question 3 Gordon wants to buy a kitchen island so that he can impress his friends with his cooking skills. The total cost of the island and fitting is $2,400. However, he doesn't actually have the money to pay the full amount upfront, so is looking at two different financing options. Option A is the credit deal offered by the retailer. Gordon can pay in monthly instalments of $80, spreading the cost over 36 months Option B is to buy it partly on his credit card which has an APR of 20.9%. Gordon has no outstanding credit on his card and can borrow up to $1,200. He plans to use the credit limit. Even then, he will need to find $1,200 from elsewhere, which he can just about scrape together, but it will wipe out his savings. He would then aim to pay off the credit card by paying $30 per month 3.1 Briefly explain what APR is and how it can be used. (3 marks) 3.2 Fill in Table 3 using the Borrowing and saving calculator to calculate the missing figures and show your workings. (6 marks) Table 3 Total interest options Monthly payment (E) Repayment period (months) Total interest (E) APR Option A 80 36 Option B 30 20.9