Each of the answers given at the right talks about the fourth month. So let's compare each of the fourth month's profits.
When the month t = 4 in Company B, the company made 10 hundred (or 1000) dollars in profits.
When the month t = 4 in Company A, we evaluate the function at t = 4. To do that we put t = 4 into the function.
P(4) = 1.8(1.4)⁴
P(4) = 6.91488
Thus the company made 691.488 dollars of profit. So during the 4th month, Company B made more than A.
Each of the answers also talks about year end profits, which would be after 12 months. The function for company B is linear whereas it is exponential for A. An exponential function will grow faster in A and have higher maximum values. We can conclude that year end profits for A will be higher.
We put the statements together - that B makes in the 4th month but at year's end A will make more.
Thus, the third box is the best answer.
