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new powerball scheduled payout info

Topic closed. 11 replies. Last post 11 years ago by Dream.

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Dream's avatar - dragon1

United States
Member #2399
September 28, 2003
143 Posts
Offline
Posted: September 25, 2005, 11:43 pm - IP Logged

new powerball scheduled payout info based on $30M jackpot

 

Payment No.Graduated Payments (Rounded)% of Total Annuity Prize
  1   $535,0001.78300991336613%
  2   $556,0001.85433030990078%
  3   $578,0001.92850352229681%
  4   $601,0002.00564366318868%
  5   $626,0002.08586940971623%
  6   $651,0002.16930418610488%
  7   $677,0002.25607635354907%
  8   $704,0002.34631940769104%
  9   $732,0002.44017218399868%
10   $761,0002.53777907135862%
11   $792,0002.63929023421297%
12   $823,0002.74486184358149%
13   $856,0002.85465631732475%
14   $891,0002.96884257001774%
15   $926,0003.08759627281845%
16   $963,0003.21110012373119%
17$1,002,0003.33954412868043%
18$1,042,0003.47312589382765%
19$1,084,0003.61205092958076%
20$1,127,0003.75653296676399%
21$1,172,0003.90679428543455%
22$1,219,0004.06306605685193%
23$1,268,0004.22558869912601%
24$1,319,0004.39461224709105%
25$1,371,0004.57039673697469%
26$1,426,0004.75321260645368%
27$1,483,0004.94334111071182%
28$1,543,0005.14107475514030%
29$1,604,0005.34671774534591%
30$1,668,000 5.56058645515974%
Payment Total$30,000,000


    Avatar

    United States
    Member #21574
    September 11, 2005
    138 Posts
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    Posted: September 26, 2005, 2:44 am - IP Logged

     

    Do you know the ALGORITHM ?

     

    Are YOU smart enough to take the Annuity ?

      starchild_45's avatar - spherewall2
      kent, washington
      United States
      Member #3509
      January 26, 2004
      465 Posts
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      Posted: September 26, 2005, 5:59 am - IP Logged

      wow 17 years to get the first million. i think i am going to start selecting the cash option.

        Avatar
        New Mexico
        United States
        Member #12305
        March 10, 2005
        2984 Posts
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        Posted: September 26, 2005, 8:25 am - IP Logged

        A lot of the joy of winning the lottery comes in the surprise.  A person who accepts the annuity will get the double dose of that commodity when it comes time for the first payment toward his $30M.

        Probably nobody much is going to take annuities, and probably PB knows it's so.  But it looks SO good on a billboard, that $30M smoke and mirrors trick.  So much better than, say, plus/minus $15M before taxes.

        If this plays you MM players ought to be able to look forward to the same song, different stanza, with a 50 year annuity and even bigger prizes for the same money. 

        Jack

        Absorb the good, ignore the bad, weigh the ugly.

        It's about number behavior.

        Egos don't count.

         

        Dedicated to the memory of Big Loooser

         


          United States
          Member #379
          June 5, 2002
          11296 Posts
          Offline
          Posted: September 26, 2005, 9:44 am - IP Logged

          Guess What! I'm taking the cash!!

          Yeah, maybe someday MM or PB will have 50-year annuities. I've heard of at least one phony million-dollar prize that was to be paid 20k a year with no cash option.

            anonymous77's avatar - moon
            Seoul
            Korea, South
            Member #21859
            September 16, 2005
            346 Posts
            Offline
            Posted: September 26, 2005, 12:31 pm - IP Logged

            Cash value option or annuity?

            For just fun, I tried to calculate the present value of 30 annual payments based on 148M annunity and its payment schedule. I used the internal rate of return(IRR) method within finance function of MS Excell.

            The calculation indicates that the internal rate of return on the 73.4M cash value investment over the 29 year scheduled cash inflows(annuity payments) is approximately 5%.

            I wonder whether PB indeed uses that rate but, based on the result, I think a possible interpretation might be:

            If a winner can get, on average, more than 5% guaranteed return on 73.4M(cash value) investment over 29 years, s/he might be better off by choosing cash value option. Otherwise, s/he had better choose annuity rather than cash value option. (Of course, it shoud be noted that other possibly relevant factors were not taken into consideration.)

            I believe that cash or annuity is simply a matter of preference and choice, rather than that of rational or irrational, or right or wrong decision. Indeed, other factors such as a tendecy to overwaste, for example, may dominate the success or the failure of a jackpot winner's choice between cash and annuity.


            Good luck!

              Avatar
              Morrison, IL
              United States
              Member #4657
              May 13, 2004
              1884 Posts
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              Posted: September 26, 2005, 3:39 pm - IP Logged

               

              Do you know the ALGORITHM ?

               

              Are YOU smart enough to take the Annuity ?

                Smart enough to take the annuity!!? That's funny

                Jackpot winners who are careless don't stand any better of a chance with an annuity than they would with the lump sum payout.  They'll probably end up borrowing against future annuity payments in place of blowing their whole lump sum.

                Cash option value is always the better choice.

                weshar75's avatar - Lottery-042.jpg
                Mcminnville, Oregon
                United States
                Member #3013
                December 13, 2003
                3052 Posts
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                Posted: September 26, 2005, 5:05 pm - IP Logged

                Since powerball went to this backloaded annuity which I am not a fan of I will be choosing the cash option this thursday morning when I head up to Salem,Oregon to the lottery office for my powerball winnings.

                  dvdiva's avatar - 8ball

                  United States
                  Member #2338
                  September 17, 2003
                  2063 Posts
                  Offline
                  Posted: September 26, 2005, 5:24 pm - IP Logged

                  Guess What! I'm taking the cash!!

                  Yeah, maybe someday MM or PB will have 50-year annuities. I've heard of at least one phony million-dollar prize that was to be paid 20k a year with no cash option.

                  I could have never guessed that.

                    BaristaExpress's avatar - BaristaExpressMX zpsfb0d8b5d.png
                    Magnolia, Delaware
                    United States
                    Member #18795
                    July 20, 2005
                    789 Posts
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                    Posted: September 26, 2005, 8:51 pm - IP Logged

                    LUMP SUM CASH PAYOUT!

                    Keep dreaming the impossible dream, it just may come true! Thumbs Up

                      Dream's avatar - dragon1

                      United States
                      Member #2399
                      September 28, 2003
                      143 Posts
                      Offline
                      Posted: September 29, 2005, 12:00 am - IP Logged

                       

                      Do you know the ALGORITHM ?

                       

                      Are YOU smart enough to take the Annuity ?

                      No, I do not have the algorithm

                        Dream's avatar - dragon1

                        United States
                        Member #2399
                        September 28, 2003
                        143 Posts
                        Offline
                        Posted: September 30, 2005, 7:21 pm - IP Logged

                        If you take $125M ($167M-25%) in graduated annual payments and invest all of the payments into CD at 3.7% over 29 years you would get ~$200,686,862. But if you take the lump sum and invested over 30 years at the same rate you would get ~185,363,823.41 at the end. I am not a pro , so I do not know any other factors.