Kindly see atached picture for question. I want to know how to answer this question and what is the correct answer.

Thank you for help. 

Haven't had to do this since I was a student so cut me some slack if I make a mistake here 

So we want to find out how many years "x" it takes for Company A/B to be equal. So...

275 + 6500 + 1600x = 1300 + 7000 + 1000x

6775 + 1600x = 8300 + 1000x

1600x - 1000x = 8300 -6775

600x = 1525

x = 2.54~

The question asks how many years after the initial year. Since this equation takes into account the initial year just do 2.5 years - 1 year  = 1.5 years

So the answer is B

 

 

B

 

Thank you so much all.