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Can someone help me out with my math?Reply
Your result is definitely wrong, but it's more than a simple math error. If you invested 141 million at 2.5% the annual earnings would be $3.525 million, so I'm guessing you got the 2.5% figure by starting with the 141 million and an annual income of $3.5 million then rounding the result to 2.5 (3.5/141=.0248). Since the annuity is from an investment of $65.6 million, a $3.5 million pre-tax income is what you'd get from a rate of 5.33% if you didn't collect any of the principal. Here's
Aug 9, 2007, 1:36 am - KY Floyd - Mathematics Forum

Why do you get more with Mega Millions?Reply
The Mega Millions jackpot is an estimated 26-year annuity value. When players choose the annuity option for their prize, the state lottery pays the prize out over 26 years by buying U.S. Government Treasury Securities, which earn interest and mature annually over the 26 years. That annual return is the amount the winners receive each year for the 26 year period. With the cash option, the state lottery will take the amount of money that would have been invested and will pay it directly to the
Jun 21, 2007, 12:26 pm - Raven62 - Jackpot Games Forum

Estimates of the highest possible MM, PB jackpots this year.
2006 is winding down to a close. Both MM and PB have relatively low jackpots, sigh... Both have 8 more drawings in 2006. If the jackpot rises without being won in either case, here is the size I estimate they will be. In MM we are starting with a reset drawing. The last draw of the year would be an 8th draw. The average annuity value for 8th draws is $82M. My modeling program suggests an annuity value of $77M and a cash value of $45.6M. The probability of the jackpot getting t
Dec 4, 2006, 11:10 am - Prob988 - Jackpot Games Forum

a poll about annuities and lump sumReply
I disagree. An annuity is the worse option for someone in their 30's. What do you plan to do after the age of 60 or 64 when your annuity runs out? Most men and women live well into their 80's and 90's. So you would have at least 20 years of no annuity payments. As a 34 year old lottery winner, did you or would you keep your real job/career and work as hard as you did before the lottery to guarantee promotions and salary increases or did you retire early and take that dream job that doesn
Oct 5, 2006, 12:47 am - Preppy - Lottery Discussion Forum

a poll about annuities and lump sumReply
Preppy, how about the effect of Income Taxes? Let us take a specific example, a Mega Millions Jackpot with an annuity value of $26 million and a cash value of $14,820,000 in the state of California. The annuity comes out to 26 annual payments of $1,000,000. The withholding tax situation is federal income tax of 25% ($250,000) is taken (no state tax on lottery winnings in California) so your check from the lottery every year is $750,000. Keep in mind you will probably owe an addi
Oct 1, 2006, 8:55 pm - CA LotteryGuy - Lottery Discussion Forum

a poll about annuities and lump sumReply
thanks Rickg for your kind words Everyone there are a more than a few ways to skin the cat so to speak. if you accept the annuity you must remember. It's out of the lotteries hands at that point they buy a bond to secure your winnings. Of course they make money. But so do you. The bond is set up to include any interest changes. And while it's up to you what you do with your checks you can buy insurance to cover medical costs. Take into considerations a trust. Hope that Bush signs the inherit
Sep 30, 2006, 1:49 am - four4me - Lottery Discussion Forum

A Challenge to CASH Only from SirMetroReply
Floridian, Lifetime annuities do pose an awkward dilemma for the Lotteries. For example, let s say a 20 year old hits the jackpot for a Lifetime annuity payout. Unless there is something within the charter that can place a time based cap on it, the state would be obligated to pay that individual until he/she died. Can you imagine the huge cost to the Lottery if that individual lived to be 100? Most of the Annuities are designed for 20 to 30 years (some even less). I think the Lotteri
Sep 21, 2006, 9:03 am - SirMetro - Lottery Discussion Forum

powerball cash valueReply
The jackpots for MM and PB are not comparable. MM is a traditional fixed annuity for 26 years, with all payments equal. PB, by contrast, is a graduated annuity, with lower payments in the early years and larger payments in later years. The amount of increase in payment each year is 4%, which is a fairly good estimate for average long-range inflation. So, though the payments aren't equal, they should be approximately equal in buying power. In addition, the PB annuity is for 30 years, not
Mar 29, 2006, 12:37 am - Uff Da! - Jackpot Games Forum

Mega Millions lottery jackpot increases to $18 millionReply
Since the first rollover never doubles the jackpot, they clearly never sell enough tickets on the first draw to pay for the minimum prize. If typical sales for the first draw are about 13 million, it's a safe bet that sales for the next draw are at least 13 million, but they'd need to sell a total of 30 million to pay for the usual $15 million annuity. That may mean that they usually don't reach their break even point until the third draw. If they sold 20 million last time around they should
Mar 5, 2006, 2:31 am - KY Floyd - Lottery News

Are you playing Mega Millions with the $5.00 per play?Reply
Powerball's increase of $8.8 Million is pretty consistent with a Monday drawing. We like Powerball's transparency with Jackpot changes. Below we can see the change in Annuity, Cash and the Sales values all move fairly well with each other. Powerball doesn't give a false perception of Jackpot growth. Mega Millions, however, we can see the disconnect of the Annuity changes relative to the changes in Cash and the Sales for each drawing at the beginning of a Jackpot Run.
Apr 12, 2026, 11:54 pm - JADELottery - Lottery Discussion Forum