2. An office manager in a public school is considering retiring. She is 62 years old, and she determines her savings would cover her current expenses if she delayed her retirement start date until she reached age 65. She then expects to receive her pension in the amount of $10,000 quarterly payments instead of the $8,000 quarterly payment she would receive by starting her pension payments at her current age of 62. She has no surviving spouse.If she lives till age 74 and the required rate of return on her pension or other similar-risk investments is 8% annually, what would be the present value of her retirement payments at the start time of retirement payments at the following ages: (See below for present value factors.)

b. 65 years

PLEASE NOTE: The present value of an annuity factors at 2% (or 8% divided by 4) are:48 quarters or number of payments (from 12 years equaling 48 quarters): 30.67336 quarters or number of payments (from 9 years equaling 36 quarters): 25.499At what retirement age would the present value of the future payments be higher?