Problem 2 (Required, 25 marks) We consider an annuity-due which the payment is made at the beginning of every quarter for 6 years and the first payment is made at the beginning of 3rd year. The payment amount of each of first 12 payments is $1000 and the payment amount of each of next 12 payments is $2000. The annual nominal interest rate during the first 4 years is 4% compounded continuously and is 5% compounded continuously thereafter. Find the present value of the annuity. Provide explanation to your calculation