Consider the accompanying cash flow diagrams, where the equal payment $1$

cash flow in constant dollar is converted $($a$)$ from equal payment cash flow in actual dollars, and

$($b$)$ at an annual general inflation rate of f $=2\mathrm{.}8$ and i $=8\%.$ What is the annual amount A in $$

actual dollars equivalent to A $=$ $$2\mathrm{.}000$ in constant dollars? Assume base year is n $=0.($b$)$ Actual dollars

$A^{\text{'}}=$$$2,000$

$($a$)$ Constant dollars