Do i need to insall apache etc to get php working

Im wanting to set up user accounts and a shopping cart system on my website. Ive managed to get the scripts required to set this up now all that is left is implementing this.

Currently i am signed up with freewebs for free webhosting but obviously im planning on buying a domain and probably a paid hosting package. Ive been recommended to 1and1 by many and might go further with them

I was just wondering though before i take up this, i know i will also need to buy a web server as i dont plan to leave my home computer on all the time as the web server. That can be done later on, but for now i was just wondering how i could for the time being test the php scripting and implement it on my website as i dont think a free web host will allow me to do this.

Is the only way by installing apache, php, mysql etc on my pc?

Also i have seen on some websites something called VPS (virtual private server) and was just wanting to know if these would be sufficient for my job at hand as they tend to be cheaper than a dedicated server at around £20 rather than £40+

Thanks a lot for any replies

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