So how come MM cash values are always considerably closer to their annunity than PB

Reply #14

savagegoose — Sat, 06 Apr 2013 16:54:55 GMT

i want to hear from people who won 30 years ago and to the annuity. how is their payouts fairing now what with inflation and all

Reply #13

Stack47 — Sat, 06 Apr 2013 14:25:01 GMT

Because PB pay 30 yearly installments and MM pay 26, the easiest way to explain it is by comparing it to the numbers of months or years we pay auto or home loans. At 4% interest, if we borrow $100,000 with a 30 year mortgage, the total cost is $171,869.51 and the total cost of a 26 year mortgage is $161,007.29.

At the same interest rate and if the cash values of both PB and MM were $100 million, the PB estimated jackpot would be $172 million and MM would be $161 million. From the home lenders... [ More ]

Reply #12

KY Floyd — Thu, 04 Apr 2013 15:54:45 GMT

It's both the length of the annuity and the varying amount of the Powerball payments. Besides being 4 years longer, the powerball annuity pays a much smaller portion in the early years, and a much higher portion in the final years. That results in significantly more money to earn interest over the life of the annuity.

Right now the MM annuity is 135% of the cash value, while the powerball annuity is almost 160%. I don't remember the exact chronology or details, but in the past Powerball's ann... [ More ]

Reply #11

Lucky4Life — Thu, 04 Apr 2013 15:27:27 GMT

as a side note I always thought the PB annuity was a raw deal. I need more money NOW than in 30 years. Looks like they could do 25% up front then a flat rate for a set number of years.

Just my ponderings....

Reply #10

rdgrnr — Thu, 04 Apr 2013 03:00:21 GMT

That's the only logical conclusion I can come up with.

And I'd look ridiculous in a habit with the long beard and all.

Reply #9

whiteballz — Thu, 04 Apr 2013 02:37:03 GMT

if you picked the annunity, would you have to live in a nunnery

Reply #8

rdgrnr — Thu, 04 Apr 2013 02:30:49 GMT

I didn't know they both had the option to become a nun.

Doesn't matter, I'd take the cash anyway.

Reply #7

billionaire2bee — Wed, 03 Apr 2013 16:42:32 GMT

I most certainly am LOL...winning millions at the gamble of a dollar...heck yeah count me in...and also NC has only had ONE MM jackpot winner since joining....and that was only the base jackpot too

Reply #6

dallascowboyfan — Wed, 03 Apr 2013 14:50:32 GMT

Good info Stack

Reply #5

johnjohnson — Wed, 03 Apr 2013 13:39:13 GMT

Is anyone still interested in MM these days? Somehow even though there are 46 megaballs. Someone always matches it before it goes high. PA hasnt won one yet!! Wish me luck

Reply #4

Ronnie316 — Wed, 03 Apr 2013 13:35:05 GMT

Good question b2b, I wonder how high the advertised JP would be if interest rates were higher

Reply #3

Ronnie316 — Wed, 03 Apr 2013 13:33:15 GMT

Thanks for the accurate and up to date information Stack.

Reply #2

Stack47 — Wed, 03 Apr 2013 13:11:19 GMT

The PB annuity has 30 payments and the MM annuity has 26. The four extra years of interest is why PB can purchase the same size annuity for less. MM is estimating a cash value of $36.9 million for their next drawing and currently $36.9 million can purchase $50 million in government securities that will pay 26 annual payments of $1,923,077. PB is estimating $25.1 million cash value and can purchase a $40 millon paying 30 average annual payments of $1,333,333.

http://www.usamega.com/mega-millio... [ More ]

Reply #1

savagegoose — Wed, 03 Apr 2013 12:46:15 GMT

MM pays an equal amount ea year, and powerball increases the annuity ea year. check out the jackpot analysis page over on usamega

So how come MM cash values are always considerably closer to their annunity than PB

billionaire2bee — Wed, 03 Apr 2013 11:26:21 GMT

I dont know if this question has been asked before but it has been in the back of my mind for awhile....Right now MM is at 50 million for est. annunity and its cash value is 46 million...PB is 40 million est. annunity and only 26 million cash value...I mean the cash value is more than the annunity in MM is bigger than the PB annunity LOL...Im also wondering if they will may be closer when California joins the PB this month...