Powerball's Cash Option

Reply #5

CASH Only — Thu, 22 May 2003 09:43:20 GMT

Saturday (5/24) jackpots:Powerball $29 million; Hot Lotto $1.5 million.

Reply #4

CASH Only — Mon, 19 May 2003 16:28:25 GMT

If there were deflation, could the cash value be the same (or HIGHER) than the annuity value?I heard of at least one bank in Japan that was paying negative interest (in effect, you paid the bank to keep your money in it).

Reply #3

CASH Only — Sun, 11 May 2003 01:44:47 GMT

Powerball (Wed 5/14) $12 million/$6.7m lump sum (cash value about 56% of annuity.)Hot Lotto $1,350,000.

Reply #2

CASH Only — Sat, 10 May 2003 12:23:24 GMT

Todd:Yet, the Super-6 game in PA (same 26-payment annuity as MM) offer a 50% cash value, vs almost 60% in MM.

Reply #1

Todd — Sat, 10 May 2003 12:16:37 GMT

I've posted about this subject before. Don't look at it that way - the cash value is not determined based on the annuity value, it's the other way around. In this case, they determine how much cash is necessary in order to generate an annuity jackpot of $10 million. The fact that the cash value is less indicates that the returns on the bonds (or whatever they purchase) is higher. Less cash is necessary to generate the $10 million 30-payment jackpot.That is also why games with a shorter annui... [ More ]

Powerball's Cash Option

smd173 — Sat, 10 May 2003 11:57:59 GMT

Anyone notice that Powerball's initial Cash Option has decreased for this next drawing to $5.5 Million? Previous starting jackpots have been at $6 Million ever since they switched to the 30 year annuity. Since interest rates haven't changed, I wonder why the decrease