You have invested into bankA that pays 4.5%p.a.compounded,and bankB which pays 8.5%p.a.simple interest on a principal K2000each,over 2years.which bank pay large loan?

To determine which bank pays a larger return over 2 years, we can calculate the total amount earned from each investment.

For Bank A:
Principal = K2000
Interest rate = 4.5% compounded annually
Time = 2 years

Using the compound interest formula:
A = P(1 + r/n)^(nt)
A = 2000(1 + 0.045/1)^(1*2)
A = 2000(1.045)^2
A = 2000(1.091025)
A = K2182.05

For Bank B:
Principal = K2000
Interest rate = 8.5% simple interest
Time = 2 years

Using the simple interest formula:
I = P*r*t
I = 2000*0.085*2
I = K340

Total amount earned from Bank A after 2 years = K2182.05
Total amount earned from Bank B after 2 years = K2000 + K340 = K2340

Therefore, Bank B pays a larger return over 2 years compared to Bank A.

Bank A (compounded interest)

Interest rate (r) = 4.5% p.a.
Time (n) = 2 years
Principal (P) = K2000

Formula for compound interest:

A = P(1 + r/n)^(n-t)

A = 2000(1 + 0.045/1)^(1-2)
A = 2000(1.09)^(2)
A = K2199.60

Bank B (simple interest)

Interest rate (r) = 8.5% p.a.
Time (n) = 2 years
Principal (P) = K2000

Formula for simple interest:

I = P-r-n

I = 2000 - 0.085 - 2
I = 340

Total amount:

A = P + I
A = 2000 + 340
A = K2340

Comparison:

The amount paid by Bank A (K2199.60) is less than the amount paid by Bank B (K2340).

Therefore, Bank B pays a larger loan.