You are 55 years old today. You are planning for your retirement, and need to decide whether you should take your social security at age 62 and receive a monthly payment of $1,800, or wait until your full retirement age of 67 and receive a monthly payment of $2,560. Payments come at the beginning of each month.

If you assume you'll live to the average life expectancy of 85 years, what is the value of each option at age 55? Which option should you choose? Assume a discount rate of 4% APR.

Option 1 (retire at 62):

Option 2 (retire at 67):