Finance 432Class Exercise 18Find a partner for this exercise. List both of your names below:______________________________________________________________________________t f(t)Cumulative Inflation0 0.1511- 0.151+ 0.1761.052- 0.1762+ 0.2541.073- 0.2543+ 0.3841.124- 0.3844+ 0.5661.165- 0.5665+ 11.201) Given a real claim value of $1000. Find the nominal compounded value of the claim at the end of 5 years.2) The graph below is a continuous version of the graph before. What possible problems could arise from calculating the claim inflation through discrete approximations of a continuous fixed claim
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