2) Smith Bank pays 8% interest, compounded quarterly. If you deposit $1,000 into the account today, how much interest will you earn in one year? What is the EAR? 5) Question #2 from homework #5 provided to be difficult. Very few students were able to solve it with the Excel financial formulas. So you have the opportunity to try again. See the solution from the last homework for the right approach. ABC bank pays 12% interest compounded monthly. If you deposit $2,500 into the account today, how much interest will you earn in one year? What is the EAR