Powerball jackpot seems very inflated.

Reply #5

Guru101 — Tue, 20 Apr 2010 18:10:13 GMT

This has been explained so many times. 2 different games. You need to stop thinking Powerball's cash option is lower and start thinking Powerball's annuity is higher .

Reply #4

TheOtherOne — Tue, 20 Apr 2010 03:36:37 GMT

Wow, It is because they KNOW man!

Good research there, congrats on that!

It is so obvious they control this stuff, particularly the smaller games such as pick 3 and pick 4. I just hope 'they' allow me to win one soon

Reply #3

mangeydog — Thu, 15 Apr 2010 04:27:58 GMT

While it is allegedly said to be tied to the return rate of the cash investment, the truth is they can manipulate their figures to claim that they are right, knowing full well that their is no one or no entity that will investigate if they are massaging the figures to amounts that they can advertise for a seemingly larger jackpot. We all know enough basic human nature to know or suspect that this is what their doing. It's interesting how the exchange rate changed so dramatically about the same t... [ More ]

Reply #2

Stack47 — Thu, 15 Apr 2010 03:31:51 GMT

Now that both games are offered in so many states and it seems most jackpot winners take the cash, MM might be the better game to play when the jackpots are about same.

Reply #1

Longarm — Sun, 11 Apr 2010 21:10:28 GMT

The main difference between Mega Millions and Powerball annuities is the longer-term and graduated annuity Powerball uses, which benefits the Powerball annuitized value.

A casual check of Powerball jackpots shows that cash values have been near 50% for the past several months, occasionally higher than 50%. Now it seems to be consistently under 50%, but this lines up with long-term Treasury yields, which have increased in the past several months. I don't know how these annuities are funded, bu... [ More ]

Powerball jackpot seems very inflated.

Bradly_60 — Sun, 11 Apr 2010 14:36:21 GMT

I don't remember the cash option ever being so low.

$175M jackpot but only a $84.1M jackpot. That is only a 48% cash option. I don't remember it being so low and interets rates really haven't rise that much.

Mega Millions has a $105M jackpot and a $64M cash option. That is a 61% cash option.

I was surprised at how quickly the Powerball jackpot was rising, but if you look closely its really not that much. What interest rate factor are they using? I know their annuity is 5 years longer... [ More ]