Determine how much $1,000 deposited in a savings account paying 8% (compounded annually) will be worth after 5 years. What is the present value of the following net cash flows if the discount rate is 12%: Your local bank offers 4-year certificates of deposit (CD) at a 12 percent annual nominal interest rate compounded quarterly. Determine how much additional interest you will earn over 4 years on a $10, 000 CD that is compounded quarterly compared with one that is compounded annually