B
Assume north and east as two sides of a right angled triangle. magnitude of the distance is then given by the length of the hypotenuse which is [tex]\sqrt{a^2 + b^2}[/tex]
where a = 1.2 km north
and b = 1.6 km east
magnitude = 2 km
Direction is given by the angle between them, that is atan(a/b) = 36.86 deg north of east = 53.1 deg east of north.
