|Posted: December 6, 2013, 3:36 pm - IP Logged|
6 million jump in the annuity with only an 800 thousand jump in the cash value? The after-tax value for the cash jackpot falls to 32.1% from 32.7% of the advertised annuity prize.
This is because the annuity factor increased (1.85 to 1.869), which decreases the cash value required to fund the annuity jackpot. Prior cash support was only $155.6 million, not the $157.2 million advertised, which is why the cash value increase seems very small.
If the chances of winning the jackpot are so slim, why play when the jackpot is so small? Your chances never change, but the potential payoff does.
If a crystal ball showed you the future of the rest of your life, and in that future you will never win a jackpot, would you still play?
P&L % = Total Win($)/Total Wager($) - 1