How do I find the present value of the deposit at time 0?

$100 is to be deposited 15 years from now. For the first 5 years, assume an annual effective interest rate of 4%. During the second 5 years, assume an annual effective discount rate of 5%. During the third 5 years assume a force of interest rate of 6%. How do I find the present value of the deposit at time 0?|||I can guarantee that the value of the deposit at the big bang is zero.





Realistically, if the deposit is not to be made for another 15 years, then it has no value prior to it existing.





I think you may simply have worded the problem inappropriately, perhaps you're looking to determine what deposit if made now at those per annum interest rates would yield a balance of $100 in 15 years time. That's a simple algebra problem.





Let X be the deposit to be made at time 0





therefore:





x * 1.04^5 * 1.05^5 * 1.06^5 = 100





therefore:





x = 100/( 1.04^5 * 1.05^5 * 1.06^5)





x = $48.12